AMTE Power has revealed that it "needs to conclude some form of fundraising within no less than the next four weeks".
In a stock exchange update on its financing position, the lithium-ion and sodium-ion battery cell developer stated that it continues to be in discussions with potential investors over raising further finance.
"Whilst active discussions are ongoing, there can be no certainty of the outcome of these discussions," read the statement.
"Accordingly, in light of the company's reducing cash position, should the company be unable to secure additional funding, the prospects for recovery of value, if any, by shareholders would be uncertain."
On 1 December 2022, the company stated that it would need to raise additional capital by April 2023 in order to meet its operating costs.
On 31 March, AMTE announced drawing down a new £580,000 loan facility and then on 25 April, a further £1m under its convertible loan facility.
The business was founded in 2013 and in March 2021, was admitted to trading on the AIM market of the London Stock Exchange.
It is focused on launching a series of battery cells based on new chemistries and cell structures, that are designed to solve key problems in power delivery, energy performance and safety. These new products are targeted at a range of specialist markets, including the electric vehicle industry and energy storage sector.
AMTE's purpose-built cell manufacturing facility in Thurso has the second largest cell manufacturing capacity in the UK and the company also has a product development team based in Oxford.
Its proposed 'gigafactory' in Dundee is expected to be capable of producing more than eight million battery cells each year, enabling the company to rapidly scale up cell production.
Chief executive Alan Hollis said: “AMTE Power is the UK’s only remaining homegrown commercial battery cell maker.
“We have established ourselves as a leading player in the sector, with differentiated lithium and sodium-ion technology on the cusp of commercialisation as indicated by our updates to the stock market in recent months.
“We are active in our engagement with stakeholders to raise funding and to communicate the importance of developing a homegrown battery manufacturing industry to enable a just transition to net zero, support the UK’s energy security and unlock green industrial growth.”
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