Wednesday, November 30, 2022
HomeUnited KingdomIn the UK, the Britishvolt battery megafactory is on the brink of...

In the UK, the Britishvolt battery megafactory is on the brink of bankruptcy

The company, although backed by the government, failed to raise further funds after an initial £200m funding round.

Britishvolt, which is carrying out a £3.8 billion battery cell mega-factory project for electric vehicles in the north-east of England, is on the brink of default, according to the British press.

“We are aware of market speculation. We are actively working on several potential scenarios to provide the necessary stability” to the company, a spokesman for Britishvolt responded to AFP, declining to provide more details.

The company could apply for its location as early as Monday, having run out of money to finance the construction of its factory and having failed to raise additional funds, with 300 jobs at stake.

Britishvolt sought to raise £200m, or even outright sell the business – the company would have been in advanced discussions with a number of potential buyers, including India’s Tata Motors, the Financial Times specifies.

The company had acknowledged in August difficulties related to “market conditions, including galloping inflation and rising interest rates”, also citing “geopolitical uncertainties” and “the global energy crisis” that pushed back the date for the start of production, which was originally envisaged from late 2023 until 2025.

Future funding of £1.7bn

Britishvolt has so far raised £200m and in January entered into a long-term partnership with logistics building specialist Tritax and UK asset management giant Abrn involving £1.7bn in funding.

The project has also received support from former Prime Minister Boris Johnson’s government, with local press funding estimated at £100m yet to be paid out. Britishvolt has also signed memorandums of understanding for cooperation with the British car manufacturers Aston Martin and Lotus.

The company aims to produce more than 300,000 batteries for electric vehicles annually in Blyth, north of Newcastle, with a total production capacity of 30 GWh by the end of the decade. She announced her intention to directly employ 3,000 people and assured that the factory would also create 5,000 indirect jobs in the UK.

Other battery megafactory projects have been launched across the country, including one by Nissan in Sunderland, south of Newcastle, in partnership with China’s Envision AESC, and another in the West Midlands region. ‘England). The UK has committed to carbon neutrality by 2050 and will ban the sale of new petrol and diesel cars from 2030.

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