Despite reports that it may be about to enter administration, Britishvolt says it has secured sufficient short-term funding from an undisclosed investor, enabling it to stay in business while it explores longer term funding options for its planned battery gigafactory in the north of England.
While battery electric vehicles (BEVs) have been growing in popularity, the domestic production of batteries is thought to be essential to the long-term future of the UK automotive industry. Access to convenient charging for drivers is also necessary, but traditional oil and lubricant companies like Shell and BP, the owner of the Castrol brand, have already made plans to scale up their charging networks.
In a statement, Britishvolt said that with the current economic climate:
“…negatively impacting much business investment at present, at Britishvolt we are continuing to pursue positive ongoing discussions with potential investors. 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.”
The almost 300 employees of Britishvolt have also agreed to an undisclosed pay cut for a month to further relieve business costs.
At a cost of 3.8 billion pounds, Britishvolt plans to build a 38 gigawatt-hour factory for producing BEV batteries in the north of England at its Cambois site. Despite being backed by mining firm Glencore and winning £100 million in UK Government support, the possibility of a recession and higher interest rates has made it more difficult for ventures like Britishvolt to secure investment.
