A company from Australia has been selected as the preferred bidder for Britishvolt. The UK battery startup that ceased operations last month.
Britishvolt will be acquired by Scale Facilitation Partners’ Recharge Industries.
Britishvolt was placed in administration because of a lack of funds.
It had intended to construct a massive facility near Blyth, Northumberland, to produce electric car batteries.
Britishvolt’s accountant and administrator, EY, expects the transaction to close within a week.
Recharge Industries is constructing a plant in Australia to manufacture batteries for electric vehicles.
Britishvolt, which had wanted to construct a £3.8bn factory as part of a long-term goal to increase electric vehicle battery production in the United Kingdom, has provided little information about its plans.
It was expected to generate 3,000 skilled jobs. Instead, more than 200 employees were laid go when Britishvolt failed.
It was obliged to repeatedly delay the plant’s production launch, most recently citing “tough external economic challenges including high inflation and rising borrowing rates.”
Australian business buys UK battery startup
This battery facility is critical to UK auto manufacturing’s future. However, the last time an ambitious startup with unproven technology backed by unheard-of figures in the battery and automobile industries attempted this, it resulted in the stunning disaster of Britishvolt, which went bankrupt last month.
Recharge Industries agreed they had paid a premium to win the bid to buy Britishvolt out of administration. But claimed this was indicative of their trust in a project that would combine Australian minerals, US battery expertise, and a viable UK site.
However, the individuals who determined the winner are not compelled to care about any of this. EY’s sole duty is to collect as much as possible for Britishvolt’s creditors.
The government claims that while it is “watching the situation,” this is a private commercial affair. However, industry figures continue to be irritated and dissatisfied that ministers do not feel compelled to play a more robust and strategic role in such a crucial development.
Today’s announcement raises more questions than it answers and marks the start of this process.
David Collard, chief executive officer of Scale Facilitation and founder of Recharge Industries, stated. “We cannot wait to begin making our plans to construct the United Kingdom’s first gigafactory a reality.”
According to its website, Recharge is constructing a battery facility in Geelong, Melbourne, which will commence operations in 2024.
According to reports, Recharge was selected as the preferred bidder for Britishvolt.
EY stated that it followed a procedure that “included weighing many approaches from interested parties and numerous offers received.”
Indriatti van Hien, deputy fund manager at Janus Henderson Investments, “The acquisition of Britishvolt will provide them with a significant foothold in Europe.
Intriguingly, a large number of British corporations have also placed bids for this asset.
Britishvolt’s failure hurt former Prime Minister Boris Johnson’s “levelling up” agenda.
It was thought that it would stimulate the economy in Blyth, one of the key so-called “red wall” seats that would switch from Labour to the Conservatives in the 2019 General Election.
The government allocated $100 million for the project. This enabled the corporation to secure an additional £1.7 billion from private investors.
Then-Business Secretary Kwasi Kwarteng described Britishvolt’s facility and the employment it will produce as “exactly what it looks like to level up.”
