Battery startup’s collapse a blow to UK’s emobility hopes
British battery startup Britishvolt has collapsed into administration. Having hoped to build the UK’s first giga-scale battery factory, its collapse signals significant headwinds for the country’s emobility momentum.
The British startup filed for administration on Tuesday, according to BBC reportage, after struggling to turn a profit and running out of money. Its board is believed to have decided on Monday that there were no viable bids to keep the company afloat.
In July 2022, the startup announced government funding for its largest asset, the £3.8 billion ($4.7 billion) advanced technology battery cell gigaplant in Blyth, Northumberland, UK.
At full production, enough battery cells would have been produced for more than 300,000 lithium-ion batteries a year. The facility was expected to employ over 3,000 people directly in skilled jobs, with another 5,000 in the wider supply chains.
The site, which was still planned for construction, was touted as the largest industrial investment in northeast England since Nissan’s arrival in 1984 and one of the largest-ever industrial investments in the UK.
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The plant was regarded as being strategically important for the UK automotive industry for it to maintain competitive advantage as it continued an ambitious electrification drive. It also supported the UK Government’s Ten Point Green Recovery Plan and was considered an important milestone to a 2050 net zero scenario for the UK.
Since announcement of the company’s financial fall, over a dozen companies have expressed interest in buying the site – according to the Financial Times – and politicians have called it a “disaster for the UK car industry”.
On the same day as the announcement from Britishvolt, which saw the majority of its staff made redundant with immediate effect, the UK announced reinforced plans onto its mandated smart charging across the country.
The Electric Vehicle Smart Charging action plan was launched by the UK Department for Business, Energy & Industrial Strategy (BEIS) and energy regulator Ofgem, on Tuesday.
The plans signal continued investment and commitment from the government to lock onto the benefits offered by EV charging for the country’s grid management and wider energy transition.
The loss of asset that was offered by Britishvolt may cause the potential of such plans to fall short.
