UK battery firm Britishvolt near collapse as it seeks funding

UK battery start-up After the government refused a £30 million financial advance, Britishvolt may run out of money and into administration.Information Guide Nigeria

The company intends to construct a facility near Blyth, Northumberland, where batteries for electric vehicles would be manufactured.

The government, which had championed the initiative, had allocated a total of £100 million to Britishvolt for the project.

The government reportedly declined the company’s request to withdraw approximately one-third of the funding early.

It has cast doubt on the £3,8 billion project, which has been repeatedly delayed.

Britishvolt has had difficulty finding investors to fund the development of its so-called gigafactory in Blyth, which was anticipated to generate 3,000 jobs.

It was lauded by ministers as an example of “levelling up” a conservative objective of investing in localities to reduce economic disparities with other regions of the nation.

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By switching from Labour to the Conservatives in 2019, Blyth made electoral history.

In recent months, the company, which has yet to generate a profit, has engaged in frantic negotiations in an attempt to get new funding.

A Britishvolt spokesperson said the company was “aware of market speculation” and was “actively working on several potential scenarios that offer the required stability”.

“We have no further comment at this time,” they added.

Ian Lavery, the Labour MP for Wansbeck, where the site is based, told the BBC he had spoken to the chairman of Britishvolt on Monday who said the company asked the government for £30m for the project to continue.

He said: “The chairman informs me that the government have replied overnight [with] Grant Shapps the new Business Secretary, saying that they are not prepared to do that and as a consequence it very likely that Britishvolt will go into administration.“

Mr Lavery added: “It is fairly and squarely at the door of the government for basically not agreeing to bring monies forward which will ensure that this project will continue. It is absolutely outrageous – what happened to levelling up?”

The Department for Business, Energy and Industrial Strategy said the government was “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”.

A Britishvolt spokesperson said the company was “aware of market speculation” and was “actively working on several potential scenarios that offer the required stability”.