Britishvolt powers up with new backers as collapse averted

Britishvolt, the government-backed battery manufacturer which earlier this year announced a £200m plan to base its UK battery scale-up facilities at Hams Hall, has avoided calling in administrators after reportedly running out of cash.

On Monday morning (October 31), The Financial Times says that the company, which was also building a £3.8bn gigafactory in Blyth in the north-east, is locked in “emergency” fundraising talks for some time after its funds ran dry.

The FT said that Britishvolt had been trying to raise £200m to sell the company, with suitors including Tata Motors and Jaguar Land Rover.

On Monday, a spokesperson for Britishvolt told TheBusinessDesk.com: “We are aware of market speculation. We are actively working on several potential scenarios that offer the required stability. We have no further comment at this time.”

However, by yesterday evening, the BBC was reporting that Britishvolt’s collapse had been avoided and that it had secured enough backing to stay afloat the “short- to medium-term”.

The identity of the new backers is undisclosed.

The news followed the Government’s £100m commitment to bring forward a £1.7bn sale and leaseback of the Britishvolt property in Blyth, Northumberland, in January. However, the government has since withdrawn this offer since it found it would be used for day-to-day operational costs.

In February, Britishvolt announced it had secured a £200m financial line from a consortium of backers.

The deal valued Britishvolt at just under £800m. Backers included listed mining and commodity investor Glencore which has pumped £40m into the venture. However, the backing was reliant on the government cash being drawn down, which it hasn’t been.

In May, Britishvolt revealed plans to build its UK battery scale up facilities in the West Midlands following a £200m investment with its partner Prologis.

Meanwhile, in August, founder and CEO Orral Nadjari announced he was stepping away from the firm, with Dr Graham Hoare OBE appointed as acting CEO.

Shadow business secretary Jonathan Reynolds said: “This disastrous news is a further reminder that the economic crisis made in Downing Street is costing jobs and investment.

“It is a sight that has become all too familiar – businesses going under, jobs being lost and investment in the industries of the future going abroad rather than the UK.

“The blame here lies with a Conservative government that has run Britain’s economy down over 12 years, failed to back growing industries as other countries have and has completely failed to grow our economy.”

The government has been contacted for a statement, but hadn’t replied by the time we went to press.

Close