Britishvolt today filed to appoint administrators and made the majority of its circa-300 staff redundant with immediate effect in a major blow to the future of UK manufacturing.
The news was broken to staff in a company-wide meeting at 12pm today, following failed efforts to sell a majority stake and secure the firm’s long-term sustainability.
The sale talks, which began last week, failed after the board decided that there were no viable bids to keep the company afloat, reported the BBC.
They were held with three investment groups, said the BBC: one from Indonesia-linked fund Dealab, with no history in manufacturing, one comprising existing investors and one last-minute bid from a British consortium.
The Financial Times reported that Britishvolt chairman Peter Rolton told staff a late offer from shareholders had received investor support, but the company’s main creditors refused to back the deal, leaving no alternative to administration. The offer included a £30 million initial investment for near-total control of Britishvolt, followed by a further £128m injection, the FT added.
The company’s administration and insolvency will be handled by EY.
EY said in a statement: “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.”
Dan Hurd, joint administrator and partner at EY-Parthenon, added: “Our priorities as joint administrators are now to protect the interests of the company’s creditors, explore options for a sale of the business and assets, and to support the impacted employees.”
Britishvolt’s collapse is a major blow for the future of the UK’s automotive industry. According to a report by The Faraday Institution, the UK will need around 100GWh of battery supply (equivalent to five gigafactories) by 2030 to satisfy demand for EV production. This will rise to nearly 200GWh (10 factories) by 2040.
At the time of writing, the only UK gigafactory to have secured deals with a global cell supplier and a major manufacturer is Envision AESC’s planned expansion at the Nissan factory in Sunderland. It promises an output of 11GWh from 2024, eventually rising to 38GWh, supplying batteries for the replacement for the Nissan Leaf.
Britishvolt’s gigafactory in Blyth, Northumberland, would have added an extra 38GWh to the nation’s total, bringing it significantly closer to the 100GWh output demanded by 2030.
The Society of Motor Manufacturers and Traders (SMMT), which represents the UK’s automotive industry, warned in November 2022 that the lack of domestic battery production threatens its future prosperity.