Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Focus on Electrification
January 17, 2023 07:53 AM

Startup Britishvolt calls in administrators in blow to UK's EV battery hopes

Industry experts estimate Britain needs four to six large battery plants to sustain a healthy car industry. It currently has one small 1.9 gigawatt-hour Nissan plant in northeast England.

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Britishvolt UK plant sketch
    BRITISHVOLT

    A rendering shows Britishvolt's planned battery factory in the northeast of England.

    LONDON -- Britishvolt, the UK startup which struggled to raise funds for an major electric vehicle battery factory in northern England, filed for administration on Tuesday in a blow to the country's hopes of building a home-grown battery industry.

    Britishvolt's failure marks a step back for Britain's car sector as industry officials and experts see domestic EV battery plants as essential to keep UK car production from shifting to mainland Europe.

    Britishvolt had been in talks with potential buyers after securing a short-term funding lifeline in November to help keep it afloat.

    Competing bids of around 30 million pounds ($36.8 million) from three early investors versus Indonesia-linked investment fund DeaLab Group were rejected by Britishvolt's creditors.

    "We remained hopeful that Britishvolt would find a suitable investor and are disappointed to hear that this has not been possible," Britain's business department said in a statement.

    The department said it would continue to work with local authorities and potential investors to secure the best outcome for the site.

    A team from accounting firm Ernst & Young's restructuring arm EY-Parthenon have been appointed as administrators.
    The administrators said Britishvolt had gone into administration "due to insufficient equity investment" for its ongoing research and development of its sites."

    A majority of Britishvolt's 300 staff were told on Tuesday they were being made laid off with immediate effect, two sources familiar with the matter said.

    "The news that Britishvolt is filing for administration is deeply disappointing, and a blow to the UK’s transition to cleaner, cheaper transport," said Ben Nelmes, chief executive of British transport research firm New Automotive.

    Best 'shovel-ready' location

    Britishvolt had previously outlined ambitious plans for a 3.8 billion pound ($4.65 billion) 38 gigawatt-hour plant in England's industrial north to build electric vehicle batteries.

    The planned plant site at Blyth is regarded as Britain's best "shovel-ready" location to make EV batteries at scale, with the land already acquired and planning permission in place.

    The British government under former prime minister Boris Johnson had touted Britishvolt's project as a major milestone toward building an EV industry as the country heads toward a ban on combustion engine cars in 2030.

    The government had committed 100 million pounds to Britishvolt's plant, to be paid out once construction began. On Tuesday it confirmed no grant had been paid out because the private funding milestones had not been met.

    "Back in July Boris Johnson when he was the prime minister told me that the cheque was in the post to Britishvolt," opposition Labour politician Ian Lavery said in a statement. "But the reality is they have never received a penny from the government."

    Britishvolt had only raised around 200 million pounds by summer 2022 and had pushed back its production timeline.

    Rising interest rates and the risk of recession have made fundraising much harder for many startups - especially those seeking huge sums for vast projects like an EV battery plant.

    EU compliance

    To comply with trade requirements with the European Union, a large part of an EV by value must be built in Britain to avoid tariffs.

    Britishvolt had received backing from mining giant Glencore, which kicked off a funding round for the startup last February.

    Industry experts estimate Britain needs four to six large battery plants to sustain a healthy car industry. It currently has one small 1.9 gigawatt-hour (GWh) Nissan plant in Sunderland, northeast England.

    Nissan is building a second 9 GWh plant at the same location with Chinese partner Envision AESC, which could expand to 25 GWh.

    Related Article
    Aston Martin EV to be powered by Britishvolt cells
    Britishvolt to develop batteries for Lotus electric sports car
    RECOMMENDED FOR YOU
    Ford's axing of Fiesta, Focus cars epitomizes industry disruption
    Recommended for You
    Ford Focus production Saarlouis
    Ford's axing of Fiesta, Focus cars epitomizes industry disruption
    Ford reduces top execs' bonuses after 'frustrating' earnings
    Ford reduces top execs' bonuses after 'frustrating' earnings
    BMW San Luis Potosi Mexico 2023
    BMW to invest $866 million in Mexico in EV push
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us