Reports related to this article:
Project(s): View 6 related projects in PECWeb
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The company behind plans to build a £3.8 billion (US$4.6 billion) electric vehicle (EV) battery factory in the U.K. has narrowly avoided collapse after receiving last minute funding.
According to reports by the BBC and The Guardian newspaper , Britishvolt (Blyth), the company behind plans for the U.K.'s first major battery plant, and unnamed backers have helped secure the short-term survival of the company after it failed to draw down government funding. Industrial Info is tracking six projects associated with the company. At full production in 2027, it will produce enough battery cells for more than 300,000 lithium-ion batteries a year. The project is set to create 3,000 direct jobs and another 5,000 indirect jobs in the wider supply chain.
The high-profile project is the flagship for the U.K. government's EV plans. In recent months the government confirmed a pledge to supply the firm with £100 million (US$115 million) in financial support for the project. However, the government reportedly refused the company's request for the first third of that funding, which almost forced the company into administration, with the potential loss of 300 jobs. A last minute injection of funding from unnamed backers prevented the collapse last week. The company stated that its employees have agreed to a pay cut for the month of November as it seeks further investment.
"While the weakening economic situation is negatively impacting much business investment at present, at Britishvolt we are continuing to pursue positive ongoing discussions with potential investors," the company said in a statement. "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."
Britishvolt's plans for the first EV battery plant is centered on a 235-acre (95-hectare) site at the former Blyth coal-fired plant site in Northumberland. Industrial Info reported that the project had received the planning green light last July. For additional information, see July 19, 2021, article - U.K. Green Lights First EV Battery 'Gigafactory'. In August this year, the project ran into construction issues and work was scaled back until early 2023. The company denied media reports that the project was on funding "life support '' to cut spending until the next round of funding is released. For additional information, see August 24, 2022, article--Britishvolt Denies U.K.'s Largest EV Battery Plant is on 'Life Support'.
The company has struggled to find backers for the next phase of the project. Speaking with the FT recently, new chief executive officer Graham Hoare, admitted that the company will need to raise £200 million (US$230 million) in funds to survive until next summer. The funding issues also throw into doubt the company's recent announcement of a £200 million (US$230 million) investment to create a research and testing facility in the West Midlands. The company aims to lease the Hams Hall facility to develop and test the manufacturing process it aims to use at the larger plant under construction. For additional information, see August 24, 2022, article--Britishvolt Invests $250 Million in U.K. Battery R&D Facility.
Industrial Info is also tracking the only other U.K. EV battery gigafactory project, being developed by Envision AESC in Sunderland, England. It will have an annual capacity of 11 gigawatt-hours (GWh) when it is commissioned in 2024, rising to an annual capacity of up to 38 GWh when fully expanded in later years.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
According to reports by the BBC and The Guardian newspaper , Britishvolt (Blyth), the company behind plans for the U.K.'s first major battery plant, and unnamed backers have helped secure the short-term survival of the company after it failed to draw down government funding. Industrial Info is tracking six projects associated with the company. At full production in 2027, it will produce enough battery cells for more than 300,000 lithium-ion batteries a year. The project is set to create 3,000 direct jobs and another 5,000 indirect jobs in the wider supply chain.
The high-profile project is the flagship for the U.K. government's EV plans. In recent months the government confirmed a pledge to supply the firm with £100 million (US$115 million) in financial support for the project. However, the government reportedly refused the company's request for the first third of that funding, which almost forced the company into administration, with the potential loss of 300 jobs. A last minute injection of funding from unnamed backers prevented the collapse last week. The company stated that its employees have agreed to a pay cut for the month of November as it seeks further investment.
"While the weakening economic situation is negatively impacting much business investment at present, at Britishvolt we are continuing to pursue positive ongoing discussions with potential investors," the company said in a statement. "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."
Britishvolt's plans for the first EV battery plant is centered on a 235-acre (95-hectare) site at the former Blyth coal-fired plant site in Northumberland. Industrial Info reported that the project had received the planning green light last July. For additional information, see July 19, 2021, article - U.K. Green Lights First EV Battery 'Gigafactory'. In August this year, the project ran into construction issues and work was scaled back until early 2023. The company denied media reports that the project was on funding "life support '' to cut spending until the next round of funding is released. For additional information, see August 24, 2022, article--Britishvolt Denies U.K.'s Largest EV Battery Plant is on 'Life Support'.
The company has struggled to find backers for the next phase of the project. Speaking with the FT recently, new chief executive officer Graham Hoare, admitted that the company will need to raise £200 million (US$230 million) in funds to survive until next summer. The funding issues also throw into doubt the company's recent announcement of a £200 million (US$230 million) investment to create a research and testing facility in the West Midlands. The company aims to lease the Hams Hall facility to develop and test the manufacturing process it aims to use at the larger plant under construction. For additional information, see August 24, 2022, article--Britishvolt Invests $250 Million in U.K. Battery R&D Facility.
Industrial Info is also tracking the only other U.K. EV battery gigafactory project, being developed by Envision AESC in Sunderland, England. It will have an annual capacity of 11 gigawatt-hours (GWh) when it is commissioned in 2024, rising to an annual capacity of up to 38 GWh when fully expanded in later years.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
