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UK battery firm Britishvolt near collapse as it seeks funding

Dearbail Jordan
Business reporter, BBC News
Britishvolt Britishvolt's proposed gigafactory in north east EnglandBritishvolt
Britishvolt's proposed gigafactory in north east England

UK battery start-up Britishvolt could run out of money and go into istration after the government rejected a £30m advance in funding.

The firm wants to build a factory in Blyth in Northumberland which would build batteries for electric vehicles.

The government, which had championed the development, had committed a total £100m to Britishvolt for the project.

It is understood the firm wanted to draw down nearly a third of the funding early but the government refused.

It has left the £3.8bn project, which has already been delayed several times, in doubt.

Britishvolt has struggled to find investors to help fund the construction of its so called gigafactory in Blyth which was expected to create 3,000 jobs.

It had been heralded by ministers as an example of "levelling up", a Conservative aim of investing in communities to reduce economic imbalances with other parts of the country.

Blyth made election history in 2019 when it changed from Labour to the Conservatives.

The firm, which is yet to make any revenue, has in recent months held urgent talks to try to secure fresh funds to stay afloat.

A Britishvolt spokesperson said the company was "aware of market speculation" and was "actively working on several potential scenarios that offer the required stability".

"We have no further comment at this time," they added.

Ian Lavery, the Labour MP for Wansbeck, where the site is based, told the BBC he had spoken to the chairman of Britishvolt on Monday who said the company asked the government for £30m for the project to continue.

He said: "The chairman informs me that the government have replied overnight [with] Grant Shapps the new Business Secretary, saying that they are not prepared to do that and as a consequence it very likely that Britishvolt will go into istration."

Mr Lavery added: "It is fairly and squarely at the door of the government for basically not agreeing to bring monies forward which will ensure that this project will continue. It is absolutely outrageous - what happened to levelling up":[]}