Britishvolt, the developer of the first giant battery factory in the UK, is considering going public.
The company has appointed Barclays and Guggenheim Capital as advisers to look into options including listing in the U.S. through a merger with a special purpose acquisition company, or SPAC, Orral Nadjari, founder and CEO of Britishvolt, said in an interview.
The deal could be announced as soon as the end of this quarter, he said.
It's the first time the company has talked in detail about its plans to finance the 2.6 billion-pound ($3.6 billion) project that will play a central role in delivering Prime Minister Boris Johnson's green plan.
The UK has banned sales of new gasoline and diesel cars by 2030, and needs a factory producing batteries for electric vehicles to avoid falling behind in the global race to lead manufacturing for the energy transition.
"The SPAC market is very interesting and is the result of the very mature capital markets in the U.S. that have identified the industrial revolution that is happening now, when we go from the era of internal combustion engine towards an era of electrification," Nadjari said. "There will be a lot of scale-ups that will need a lot of capital."
The company has not identified any automotive customers yet, and it's unclear if any automaker will agree on a supply deal with an upstart that is still seeking funding. Nadjari, a former investment banker, says he is not worried.
If Britishvolt does agree to a SPAC deal, the target to announce it will be the end of the second quarter or beginning of the third, Nadjari said.
Based in Blyth in northeast England, Britishvolt is planning to launch its series B funding round next week to raise as much as 100 million pounds, with Barclays as its financial adviser, Nadjari said. The round already has "a lot of interest" and series C will follow before summer with a cap of 250 million pounds.