UK battery company Britishvolt is on the brink of collapse as early as today as the start-up failed to secure much needed funding, according to reports.
The company has been developing a £3.8bn Gigafactory in north-east England and has reportedly been in emergency fundraising talks for weeks after running out of cash, according to the FT news site.
It was trying to raise £200 million or to sell the company outright. It has been in advanced talks with a number of potential buyers, including India’s Tata Motors, which owns Jaguar Land Rover, reported the FT, attributing its information to three unnamed insiders.
Ben Kilbey, Chief Communications Officer for Britishvolt, told BEST: “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.”
The company has around one month’s cash left, according to the FT. One proposal under discussion involves an attempt to secure short-term funding to keep Britishvolt operating until a larger deal or acquisition is done.
Britishvolt has been trying to secure extra funding from the UK government. Ministers had promised £100 million in regional funding, on condition of reaching milestones. These have not been met and Business Minister Grant Shapps reportedly turned down their request for £30 million in advanced funds to stay afloat.
A BEIS spokesperson for the UK’s Department for Business, Energy and Industrial Strategy said: “We are determined to ensure the UK remains one of the best locations in the world for automotive manufacturing as we transition to electric vehicles, while ensuring taxpayer money is used responsibly and provides best-value.
“We do not comment on speculation or the commercial affairs of private companies.”
Britishvolt was recently forced to delay the start of production at the plant for a second time. It had been scheduled to begin by the end of next year.
In August, the company announced it would be delayed until the middle of 2025. Its CEO Orral Nadjari stepped down from his role at the company he launched in 2019.
At the time the firm blamed “difficult external economic headwinds including rampant inflation and rising interest rates”.
