Financial advisors to Britishvolt have been given weeks to find a buyer for the Northumberland gigafactory, it has been reported.
Investment bank Lazard has reportedly been given five weeks to secure new owners for the Blyth electric battery plant, where there are plans to create 3,000 jobs as well as a further 5,000 in its supply chain. The Times claims the bank has been instructed to bring in short-term US investment ahead of a longer term deal, which could be with automotive companies, or with Asian battery businesses, with Jaguar Land Rover owners Tata Group of India said to be among those in the frame.
The reports come days after Business Secretary Grant Shapps insisted that Government money pledged to the scheme is still on the table, but that Britishvolt can’t access it until milestones are agreed.
Read more: Government accused of abandoning Britishvolt and hope of 3,000 jobs
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 on the site earlier this year, but the company’s request to draw down £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.
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 – that would stave off collapse for a few weeks. 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 Thursday, Britishvolt’s chairman Peter Rolton told ChronicleLive 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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