Britishvolt advisors are reported to have been given just five weeks to find a buyer for the job-creating gigafactory in the North East.
Investment bank Lazard is said to have been given the short window to find new owners for the site of the Blyth electric battery plant, which would create 3,000 direct jobs and around 5,000 in its supply chain, while also manufacturing hundreds of thousands of EV batteries.
Reports in The Times claim Lazard has been instructed to attract short-term US private equity ahead of a potential longer term deal. Longer term, it is said Lazard could bring in automotive companies, or battery businesses in China and Korea, and Jaguar Land Rover owners Tata Group of India is said to be among those in the frame. The reports follow comments made by Business Secretary Grant Shapps over the Government’s refusal to allow Britishvolt to draw down funds promised to the project.
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Mr Shapps insisted that Government money pledged is still on the table, but says Britishvolt can’t access it until milestones are agreed. The company issued a short statement, saying its policy is to not comment on market speculation, adding: “We’re actively working on several potential scenarios offering the stability needed to enable us to carry on building a strong and viable British battery cell R&D and manufacturing business.
"It is important that Britishvolt is a success: not only for the circa 300 employees currently working for the company, but also for the many thousands of jobs that we intend to create at our gigaplant site in Northumberland and our R&D and scale-up facilities in the West Midlands, as well as for the future of the UK auto industry and the country’s target to become net carbon zero by 2050. The ‘Britishvolt Effect’ is of huge strategic importance to UK plc and its standing on the global battery map.”
Britishvolt was pledged £100m following a high profile event in Blyth at the start of the year. However, the company’s request for £30m of the £100m Automotive Transformation Fund cash was recently refused. Mr Shapps said on Friday that Britishvolt’s access to the cash is contingent on the company meeting certain criteria, including firmed-up customers and further private investment.
Last week the firm was reported to be on the verge of filing for administration before it confirmed a short term funding injection – believed to be from existing investor Glencore. In addition, some of the firm’s 300 staff have agreed to a voluntary pay cut while its executive team has agreed a total pay cut for November.
On a visit to the site last week, Britishvolt’s chairman Peter Rolton told BusinessLive he was confident that ongoing negotiations with backers would come good in the next three weeks, saying: “We’ve had a lot of discussions started which were previously, frankly, stalled – where they said ‘we’re out, we love you dearly but not at the moment’ – they’re now coming back to the table. I’m confident we’ll get somewhere.”
In his weekly industry newsletter, the company’s chief communications officer said: “A white knight rode in and saved us at the 11th hour this week. We thank you. As I said this week to multiple outlets: Now is not the time to be second guessing the strategic importance of the energy transition. Now is the time for both public and private sectors to unite and ensure a successful energy transition, collaboratively. Domestic battery cell production is an essential element for that success. Everyone one of us needs to look the same way and accept that changes are needed to get this right.
“New ways of doing things are essential for success. This is a once in a lifetime opportunity for us all. The invasion of Ukraine has only highlighted the dire need for a switch to renewable energy sources to empower energy independence and security.
“Clearly electric vehicle sales continue to go from strength to strength, highlighting the pressing need for domestic battery cell production. As we all embark on the energy transition, together, localised battery cell production will give the UK the opportunity to truly shine on the global battery map. It will also likely encourage increased foreign direct investment. Batteries will be a part of the solution to the energy crisis, that is having a devastating effect on household spending.”
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