Britishvolt in talks to sell majority stake to consortium

UK battery start-up Britishvolt is in talks to sell a majority stake to investors following a near-collapse.

The battery manufacturer which has a £200m plan to base its UK scale-up facility at Hams Hall said in a statement: “The discussions aim to secure legally binding terms that would provide Britishvolt with the long-term sustainability and funding necessary to enable it to pursue its current plans to build a strong and viable battery cell R&D and manufacturing business in the UK.”

The Financial Times reported in November that the company had been trying to raise £200m to sell the company, with suitors including Tata Motors and Jaguar Land Rover after its funds ran dry.

It also revealed that the firm had avoided going under after securing investment believed to be from mining firm Glencore.

Britishvolt also had agreed a temporary pay cut with its 300 staff, as it worked towards a “more secure funding position.”

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 2021.

However, the government has since withdrawn this offer since it found it would be used for day-to-day operational costs.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 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.

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