Battery firm backed
Britishvolt ‘secures funding’ to avert collapse
Battery manufacturing start-up Britishvolt has been saved from collapse after securing eleventh hour funding.
New, undisclosed, backers have been found to enable the business to stay afloat in the short term, it has been been reported.
There were fears earlier that it would be forced to call in administrators, with EY said to be on standby, if funding could not be found. Short term finance has now been found, according to sources.
Britishvolt wants to build a £3.8 billion gigafactory in Blyth, Northumberland to produce batteries for electric vehicles.
It was set up three years ago with tens of millions of pounds of investment including between £1.7bn and £2bn from Tritax, a property investment company majority-owned by the investment house and former FTSE 100 firm abrdn.
The Swiss commodities miner Glencore and the equipment rental company Ashtead have also given support.
The government promised the company £100m through the Automotive Transformation Fund but the money but the money has not yet been released as the company attempted to establish operations amid a number of setbacks.
Co-founder, Orral Nadjari, left in July and there have been frantic attempts to raise capital to cover growing start-up costs.
The Department for Business, Energy and Industrial Strategy has said the government is “determined to ensure the UK remains one of the best locations in the world for automotive manufacturing as we transition to electric vehicles, while ensuring taxpayer money is used responsibly and provides best-value”.