The company behind plans to launch a 3,000-job gigafactory in Northumberland has acknowledged funding challenges after reports it was close to collapse.
Britishvolt has sought to contain speculation about its future by saying it has secured short term investment for the coming weeks that will buy it time to negotiate longer term deals with potential backers. In addition, around 300 staff at the firm have agreed to a voluntary pay reduction this month as part of measures to curb costs.
The start-up is facing a funding crisis that threatens its £3.8bn plans to launch a battery factory on the site of the former coal yards of the old Blyth Power Station. In a new statement it acknowledged the current economic landscape had made it difficult to raise investment.
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Wansbeck MP Ian Lavery, whose constituency includes the Cambois site, has called on the Government to release funding for the firm but International Trade Secretary Kemi Badenoch, who was in the North East for the Green Trade and Investment Expo, sounded a cautionary note saying taxpayers' money needed to be used wisely.
In a statement from Britishvolt, the firm said it continued to explore both short and long-term funding streams that would enable it to deliver on the ambitious plans to deliver more than 300,000 lithium-ion batteries a year on the site.
It said: "While the weakening economic situation is negatively impacting much business investment at present, at Britishvolt we are continuing to pursue positive ongoing discussions with potential investors. In addition, we have also received promising approaches from several more international investors in the past few days.
"The result is we have now secured the necessary near-term investment that we believe enables us to bridge over the coming weeks to a more secure funding position for the future. To further reduce our near-term costs, our dedicated employee team has also voluntarily agreed to a temporary salary reduction for the month of November.
"We want to thank our employees, suppliers and investors, for their continuing belief in Britishvolt. It is important that Britishvolt is a success not only for the close to 300 employees currently working for the company, but also for the many thousands of jobs we intend to create in the UK as we progress our plans. The 'Britishvolt effect' is also of huge strategic importance to UK plc and the country’s standing on the global battery stage."
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