Battery plant plan collapses as AMTE Power fails

AMTE Power Dundee (plan)
AMTE Power’s proposed Dundee facility

Scotland’s hopes of hosting a giant battery manufacturing plant have been dashed after the company behind the gigafactory proposal said it intended to appoint administrators.

AMTE Power, which planned to make eight million cells a year at a £190m factory in Dundee, intends to appoint administrators after failing to raise funds to continue trading. It has a manufacturing facility in Thurso employing about 40 staff and a research centre in Oxford.

The lithium-ion and sodium-ion batter cell manufacturer had hoped to create 215 jobs in Dundee and 800 more in the supply chain.

Late yesterday the company requested a suspension of trading on AIM, pending clarification of its financial position. FRP Advisory Group has been appointed administrator to seek potential buyers.

In November AMTE Power entered into a subscription, placing and convertible loan agreement with Pinnacle International Venture Capital to raise £2.5 million. Pinnacle has declined to advance funds under the loan facility.

AMTE Power Thurso factory
AMTE Power has a plant in Thurso

As a result, AMTE said it has no other means to secure finance and will have insufficient funds to continue trading.

The company had failed to secure government help and it considered moving to the US because of the incentives on offer for gigafactory builders. It failed to get firm orders from carmakers and other potential customers, or a patient investor that could fuel an expansion in production.

WH Ireland will resign as nominated adviser to the company upon the appointment of an administrator.

If the company fails to appoint a replacement nominated adviser within a month of the date that its shares are suspended from trading on AIM, the shares will be cancelled. The board also cancelled a general meeting of the company due to be held today.

Shares in AMTE Power were down 9.5% at 0.86 pence each in London on Tuesday afternoon.

FRP director Richard Bloomfield described AMTE Power as a “leading player in the UK’s battery cell manufacturing capabilities”.

He added that it had an important role in supporting the UK’s clean energy transition.

Mr Bloomfield said: “We expect interest from trade and institutional investors as we work diligently to secure a future for the business.”

AMTE Power’s demise follows the collapse of Britishvolt which wanted to build a battery plant in Blyth, Northumberland.

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