British start-up and manufacturer of electric vehicle (EV) batteries Britishvolt has announced that it has gone into administration, with the majority of its 300 staff being made redundant with immediate effect.
The news was reportedly broken at an all-staff meeting this morning [Tuesday 17 January].
In July this year, the company received funding from the UK government to build a giant electric car battery factory in Northumberland. It was hoped this plant would form part of a long-term growth in the UK’s manufacturing sector.
According to a statement from EY, which is now responsible for managing the company’s financial affairs, this development can be attributed to ‘insufficient equity investment for both the ongoing research it was undertaking and the development of its sites in the Midlands and the North East of England.’
The accountancy body will now begin examining the company’s assets, including its intellectual property and research, in order to pay creditors and close other business affairs.
Yesterday [16 January], Britishvolt said it was having discussions concerning a “majority sale” of the company but these talks appear to have fallen through.
Dan Hurd, joint administrator and partner at EY-Parthenon, said: “Britishvolt provided a significant opportunity to create jobs and employment, as well as support the development of technology and infrastructure needed to help with the UK’s energy transition.
“It is disappointing that the company has been unable to fulfil its ambitions and secure the equity funding needed to continue.
“Our priorities as joint administrators are now to protect the interests of the company’s creditors, explore options for a sale of the business and assets, and to support the impacted employees.”