The new proposed factory in Blyth in Northumberland attracted several investors despite the company’s lack of expertise.
A UK battery start-up Britishvolt might be running out of funds. A start-up that had gained momentum in its early days as it was the same time when the then Prime Minister Boris Johnson was on the chase of finding big projects to provide the population with employment. Unfortunately, just after this amazing investment in gaining million 100 pounds, now the company sees itself in a conundrum as they enter administration.
It lost its 3.8 billion pound deal, which was supposed to be invested in building up the new gigafactory which was expected to create 3000 jobs.
The company, which has not yet generated any money, has recently had urgent talks in an effort to seek additional funding to remain sustainable.
A Britishvolt spokesperson when asked had no further comment to add.
In a further discussion in an interview with BBC, Ian Lavery, the Labour MP for Wansbeck, said in a conversation with a British spokesperson that the company was promised a 30mn pounds from the government.
Ian Lavery, the Labour MP for Wansbeck, said:
“The chairman informs me that the government has replied overnight [with] Grant Shapps the new Business Secretary, saying that they are not prepared to do that and as a consequence, it is very likely that Britishvolt will go into administration.”
However, Britishvolt was able to garner significant financial support as well as sincere attention from significant auto manufacturers. It reached the point of delivering prototypes of the battery cells it hoped to make, although made at the government-funded UK Battery Industrialization Centre rather than in its own facility. The company also signed memoranda of understanding with the British sports car manufacturers Aston Martin Lagonda and Lotus.
Britishvolt was able to gain some important investors like the FTSE 100’s blue-chip companies: Glencore and Ashtead.
According to various people with knowledge of the negotiations, Indian company Tata Group, which now owns British automaker Jaguar Land Rover (JLR), is one of the businesses considering buying it. Attempts to reach Tata for comment were unsuccessful.
Where will JLR get its batteries, one of the major unresolved problems in the UK auto sector, be addressed by a Tata acquisition? A Tata acquisition would also signal that hope for an industrial renaissance in a region of the UK is still alive.