Battery manufacturer AMTE Power is facing administration and its shareholders risk losing their investments unless it can secure additional funding in the next few days.

The company, which has a manufacturing facility in Thurso and wants to build a gigafactory in Dundee on the site of the former Michelin tyre factory, has been in discussions with existing and potential investors for the past month.

However, given the further passage of time since the most recent announcement on 29 June 2023, the company’s financial situation is becoming “ever more critical”, it said in an update.

“Having managed its resources, the company now needs to implement a solution within the next few business days. 

“Whilst active discussions continue with existing and potential investors, there can be no certainty of the outcome of these discussions, in which case putting the company into administration is ever more likely.

“In the event that the company is put into administration, trading of its shares on AIM would be suspended with immediate effect.

“Accordingly, should the ccompany be unable to secure additional funding, the prospects for recovery of value, if any, by shareholders would be remote.

“Further announcements will be made as and when appropriate.”

The announcement comes just 24 hours after Tata, owner of Jaguar Land Rover, announced plans for a £4bn battery gigafactory in Somerset, and months after Britishvolt collapsed because of a lack of funding.

AMTE Power has been planning to build a megafactory in Dundee to build up to eight million cells a year.

The project would be upgraded over time to a gigafactory, but the firm also considered siting the plant in the US because of more generous subsidies.

AMTE Power’s purpose-built cell manufacturing facility in Thurso has the second largest cell manufacturing capacity in the UK and the company also has a product development team based in Oxford.

Shares in AMTE Power closed 4p, or 47%, lower at 4.5p. On its market debut in 2021 it was valued at about £61 million after placing shares at 175p.

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