Britishvolt is preparing to enter administration as early as Monday after the troubled UK battery start-up failed to secure additional funding, according to three people with knowledge of the matter.
The company, which is building a £3.8bn gigafactory in north-east England, has been in emergency fundraising talks for weeks after running out of cash.
The company has been trying to raise £200 million or sell the company outright and has been in advanced talks with a number of potential buyers, including India’s Tata Motors, which owns Jaguar Land Rover.
Press secretary British Voltwhich is backed by FTSE 100 mining group Glencore, declined to comment.
The pending collapse marks the end of former prime minister Boris Johnson’s dream of a home-grown UK battery champion, but paves the way for a more established manufacturer to take over the proposed factory site in Blyth, Northumberland.
Any administration would likely spark a scramble to secure Blythe’s hosting rights.
Several other companies are in talks with landowners to express interest in the Blyth site, which is considered one of the best in Europe for battery production because of its deep seaport, rail links and clean energy.
Auto leaders and analysts have always questioned the company’s strategy of building a factory before securing firm orders from an automaker, rather than the industry’s established pattern of finding a customer and then building a factory.
Lately, current business leaders have been trying to raise smaller amounts to buy more time for a big bailout. The company has about a month’s worth of cash left, according to two people briefed on the matter.
One proposal under discussion included trying to secure short-term financing to try to shore up Britishvolt’s operations until a larger deal or acquisition is struck, two of the people said.
Ministers pledged £100 million to the company, but the funding was only to be stopped once construction work reached a certain milestone, which has yet to be achieved. Britishvolt executives tried several government avenues to get additional financial support.
Over the past month, Britishvolt has redirected funding from the Blyth site to some battery work to try to preserve its dwindling cash reserves and generate orders that will bring it much-needed income.
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