Hundreds to lose jobs as electric car battery maker Britishvolt collapses
The company had plans to build a gigafactory in Blyth
Last updated 17th Jan 2023
UPDATE: Northumberland County Council have reacted to the news,
Council Leader Glen Sanderson said;
"This is extremely disappointing news – for all those connected with the company and those who have lost their jobs, and also those who have lost their dream of working here.
“It’s also a blow for the communities in and around Cambois, the county and the wider region.
“However it is a hugely valuable site with so much potential and the council has done everything it can over the past two years to support the company.
“We’re determined to find a new investor for this site in an area which has a growing track record in attracting high-tech industry and high quality jobs.
“We will continue to work with Government to pursue our growth ambitions and are doing everything we can to bring forward the jobs and investment that are so important for Northumberland.
“When we undertook the sale of the land we took care to ensure a number of safeguards were put in place, including a buy back option on the site for our original selling price - if a battery plant is not built there.”
The huge site near Cambois was earmarked for a gigafactory – producing a new generation of electric car batteries – and was set to provide 3,000 jobs directly on the site and up to 5,000 more in the plant’s supply chain.
However this week the company went into administration making the majority of its 300 staff redundant, administrators have confirmed.
The company, which had plans to build a gigafactory to make the batteries in Northumberland, has appointed administrators at EY after failing to raise enough cash for its research and the development of its Cambois site.
It comes after months of trouble as the company struggled to raise enough money to stay afloat.
A week ago the group said it was in talks with potential investors.
"The company has entered into administration due to insufficient equity investment for both the ongoing research it was undertaking and the development of its sites in the Midlands and the North East of England," EY said on Tuesday.
"The joint administrators are assessing the options for realising the potential value in the business and assets of the company, including intellectual property and R&D assets, for the benefit of creditors.
"The administrators will subsequently implement an orderly closure and winding down of the company's affairs, as required.
"As a result, regrettably, the majority of Power by Britishvolt Limited employees have been made redundant with immediate effect.
"All those impacted are being offered appropriate support and advice."
"We're losing the race for electric vehicle battery manufacturing"
Last Monday, the company said it was seeking a deal with a consortium of investors to purchase a majority stake in Britishvolt and secure its future.
The group's board held further talks but decided on Monday there were no current viable takeover offers.
The start-up has been developing a £3.8 billion gigafactory in Blyth, Northumberland, and received tens of millions of pounds of financial backing from metals giant Glencore.
But it fell into emergency funding talks in November after revealing it was close to entering administration, and managed to secure funding to keep it afloat in the short term.
Britishvolt has around 300 existing employees who agreed to a voluntary salary cut for November to help reduce costs.
Earlier on Tuesday, Downing Street said that it was aware of speculation surrounding the company, but said it would await updates from Britishvolt itself.
The Prime Minister's official spokesman said:
"We continue to take steps to ensure the UK remains one of the best locations in the world for automotive manufacturing as we transition to electric vehicles."
Kevin Hollinrake, a business minister, said:
"It's important to note that we have not withdrawn any money from Britishvolt but clearly taxpayers money is important. It's important that we dispense that money in a responsible way.
"There were clear milestones we expect anybody who's received public money to hit and we are looking at the situation very carefully to make sure they are."
Jonathan Reynolds, Labour's shadow business secretary, said:
"The Government's long-term failure on industrial strategy means we're losing the global race for electric vehicle battery manufacturing putting our world-famous car industry at risk.
"Under this Government local communities are watching businesses shutting their doors, job opportunities going abroad and investment leaving Britain."