Administrators handling the failed Britishvolt gigafacctory project have been urged to find a way of reviving a scheme which promised to bring thousands of jobs to the North East.
The company’s plans to build a plant at Cambois, Northumberland, to make batteries for electric vehicles had promised 3,000 direct jobs and another 5,000 in its supply chain – 0 but the company went into administration last month after weeks of financial troubles.
A number of companies have been linked with deals to take over the company, including investment group Greybull, Australian firm Recharge Industries and a group led by Britishvolt founder Orral Nadjari. It has been reported administrators EY have set a deadline for bids this week with the future of the site possibly resolved within the next few days.
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Writing for The Journal, North East England Chamber of Commerce chief executive John McCabe said the gigafactory was crucial to the North East economy.
He said: “The automotive sector has gone through intensely challenging times over the last 10 years, culminating in 2022 being its worst year in more than six decades. That’s why the collapse of Britishvolt has raised so much concern.
“Where once the project offered us hope the North East could be at the heart of the UK’s advanced manufacturing, automotive and engineering supply chains, now we’re staring down the barrel of a potential false dawn and watching thousands of potential jobs disappear. It’s no wonder there has been so much political interest in the Britishvolt site as there has been from investors around the world.
“Although the site’s future is now in the hands of administrators, the Government and local politicians are right to be concerned that we don’t jump from one false dawn to another. It is vital for the North East’s economic future that any new owners commit to delivering the original vision for a world-leading gigaplant in Cambois.
“They must have the wherewithal to move the project forward at pace, to reduce the risk of any more body blows to the auto industry and secure the biggest employment opportunity the region is likely to see for generations to come.”
Wansbeck MP Ian Lavery, whose constituency includes the site – the former coalyards of the old Blyth Power Station – also urged a positive solution. He said: “It is positive there are a number of parties interested in the sale of Britishvolt and their assets, which is unsurprising given the strategic advantages the site in Cambois has for building a gigafactory.
“Hopefully this is a sign this site will be under development sooner rather than later and thousands of much-needed jobs will be created for our region. While I understand the administrators have a duty to secure the best financial deal for the creditors, I urge them to consider the role this site will play in the economic future of our region and how important it is that whoever acquires it is ready and willing to develop a gigafactory and create thousands of jobs without any further delay.
“I have been particularly encouraged by the interest of Recharge Industries, who are seeking to develop the Cambois site alongside another they already have under way in Geelong in Australia.”
He added: “I eagerly await the administrators’ decision and will do whatever I can to support whoever is successful in their bid to get a gigafactory built as quickly as possible.”
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