Britishvolt is considering appointing EY as an administrator after it was unable to raise £200m from private backers. The company – which is seeking to build a £3.8bn battery ‘gigafactory’ in Blyth – had hoped to stay alive by securing a £30m advance on further promised government funding. However, on Monday he was told by the Department of Business that the money would not be available. A spokesman for Britishvolt said: “We are aware of market speculation. We are actively working on various scenarios that provide the required stability. We have no further comment at this time.” Founded in 2019, Britishvolt aimed to supply electric car batteries to the car industry by building a factory on a site in the North East of England as part of Britain’s green energy revolution. The business planned to employ 3,000 people and support 8,000 jobs in the region. It currently employs around 300 people. It had signed test deals with the likes of Aston Martin and Lotus to work on car battery technology and has secured backing from FTSE 100 miner Glencore. In January, Mr Johnson announced the government’s funding for Britishvolt as proof of the UK’s “place at the helm of the global green industrial revolution”. The company has secured a £100m commitment for a grant from the Government’s Automotive Transformation Fund, but this is dependent on certain manufacturing milestones, sources said. Amid mounting financial difficulties and production delays, Britishvolt executives have written to ministers urging them to release £30m of funding early. On Monday, the Department of Commerce — now headed by Grant Shapps, once a close ally of Mr. Johnson — responded by denying the request. Ian Lavery, the Labor MP for Wansbeck where the plant was to be built, told the BBC: “It is very likely that Britishvolt will go into administration. “It’s fair and square at the government’s door that it’s basically not agreeing to put money forward that will ensure this project goes ahead.” A spokesman for the Business Department said: “We are determined to ensure that the UK remains one of the best locations in the world for the car industry as we transition to electric vehicles, while ensuring that taxpayers’ money is used responsibly and provides the best value.” Britishvolt had received funding commitments of up to £2bn but most of that cash, from investors Tritax Group and abrdn, has yet to be released by investors as it was dependent on taxpayer-backed funds. The business was forced to cut its valuation by £400m earlier this year, blaming market conditions and inflation. It had repeatedly delayed its production plans, with construction now expected to begin in 2025. At one stage, the company was valued at £2 billion and planned to float on the London Stock Exchange. Orral Nadjari, the company’s co-founder and chief executive, stepped down in August and was replaced by former Ford executive Graham Hoare. His departure follows that of chairman Lars Carlstrom, who stepped down in December 2020 following a historic tax fraud indictment dating back to the 1990s. Ed Miliband, Labour’s Shadow Environment Secretary, said: “This is all too well known to the Tories: businesses are going under, jobs are being lost and Britain is losing the race for industries of the future.”
