The company informed that workers were needed to undergo voluntary wage cutbacks as it awaited critical government financing. Despite formerly having hoped to place the UK at the “helm of a worldwide green industrial revolution.”
Battery start-up Britishvolt has filed for the appointment of administrators after being unable to find a buyer.
A court document revealed the move on Tuesday. A day after the organization announced it was in negotiations with investors about a possible sale to save the company.
The company has been on the verge of bankruptcy since the delay of £100 million in anticipated government support for the construction of a proposed battery gigafactory.
A source informed Reuters that the bulk of Britishvolt employees will be laid off. 300 individuals were employed by Britishvolt in November.
As the company proceeded to evaluate its financial future, CEO Graham Hoare told that employees had agreed to a “significant” interim salary decrease.
The £3.8 billion gigafactory project at Port of Blyth, Northumberland, received £1.7 billion in private finance. However, a significant portion of that cash would not be accessible until the government aid was paid.
UK battery startup Britishvolt requests administrators
Last year, the Department of Business, Energy, and Industrial Strategy (BEIS) reportedly determined that the company had not met certain criteria for the £100 million payment to be made, forcing it to seek financing elsewhere.
On the site of the former coal-fired Blyth Power Station, the firm proposed to manufacture power cells for 300,000 electric vehicle battery packs per year, eventually employing 3,000 people.
Former British Prime Minister Boris Johnson applauded the aims of Britishvolt. Stating that the facility will “increase the manufacture of electric vehicles in the UK. And consolidate the country’s position “at the forefront of the global green industrial revolution.”
However, in October of last year, Labour stated that the government was certainly responsible for the company’s financial difficulties.
Jonathan Reynolds, the shadow business secretary at the time, stated, “This devastating news is yet another reminder that the economic crisis created in Downing Street is hurting jobs and investment.
It is an all-too-familiar sight to see businesses failing, jobs being lost. And investment in future industries flowing elsewhere rather than to the UK.
As the clock ticks down to the ban on the sale of new automobiles powered by diesel and gasoline engines in 2030. The demise of Britishvolt could force more automakers to look further afield for battery supplies.
