Britishvolt collapses into administration
By Abigail Townsend
Date: Tuesday 17 Jan 2023
(Sharecast News) - Britishvolt Group has collapsed into administration with the loss of 300 jobs, it was confirmed on Tuesday, after the battery start-up ran out of funds.
Accountancy firm EY, which has been appointed administrator, said the UK firm had gone into administration "due to insufficient equity investment for both ongoing research...and the development of its sites in the Midlands and the north east of England".
Staff were told on Tuesday, with the "majority" laid off with immediate effect. It is understood 300 staff have been made redundant, according to multiple reports.
Founded in 2019, Britishvolt initially attracted investment from a range of companies as well as a pledge for £100m of government funding. It intended to build a build a £3.8bn gigafactory producing sustainable, low-carbon batteries at a large site in Blyth, Northumberland.
But construction was repeatedly delayed, and as a result the public funding did not come through. With no firm orders and costs continuing to rise, it secured emergency funds late last year from backer Glencore, the commodity trader.
But Britishvolt told staff on Tuesday it no longer had enough funds to continue operating, including paying wages. Chair Peter Rolton also told staff that while a late takeover offer from a group of shareholders had received investor support, the company's creditors had refused to back the deal, the Financial Times reported.
In a statement, joint administrator and partner Dan Hurd said: "Britishvolt provided a significant opportunity to create jobs and employment, as well as support the development of technology and infrastructure needed to help with the UK's energy transition.
"It is disappointing that the company has been unable to fulfil its ambitions and secure the equity funding needed to continue."
EY said it would now explore options for a sale of the business and its assets.
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