Britishvolt Ltd. is going into administration in a blow to the UK’s hopes that a homegrown battery maker will emerge to supply its shrinking auto industry.
(Bloomberg) — Britishvolt Ltd. is going into administration in a blow to the UK’s hopes that a homegrown battery maker will emerge to supply its shrinking auto industry.
The company applied for insolvency and to appoint administrators on Tuesday at the High Court in London, according to court filings. Britishvolt has scheduled an all-staff call, according to people familiar with the matter, who asked not to be named as they were speaking ahead of the meeting.
With backing from mining giant Glencore Plc, Britishvolt was viewed as a key part of the UK’s drive toward an electric-car manufacturing boom. While the startup had plans to build one of the country’s biggest cell factories and signed outline agreements with Aston Martin Lagonda Holdings Ltd. and Zhejiang Geely Holding Group-owned Lotus Cars, it’s been unable to secure firm commitments for orders.
Britishvolt was in talks last week to be rescued at a valuation of just £32 million ($39 million), 95% less than what it was worth just last year. The closely held company is expected to appoint EY as its administrator to sell assets, the most valuable of which is likely to be its Blyth factory site in northeast England.
A spokesperson for Dentons, the law firm representing Britishvolt, declined to comment.
Britishvolt’s failure means the UK risks missing out on the global EV boom. The country has just one reasonably sized cell plant in operation, owned by China’s Envision Group, and has failed to attract investment in additional large-scale facilities.
Related: The UK Car Industry’s Prospects Are Going From Bad to Worse
The Blyth location is ideal for battery manufacturing, with ample space and access to clean energy. Britishvolt held talks late last year about selling the 93-hectare (230-acre) site, people familiar with the matter said at the time.
In August, Britishvolt postponed the start of production at its main factory site in northern England to mid-2025 from an original target of late 2023, citing rising interest rates, inflationary pressures and surging energy costs.
–With assistance from Upmanyu Trivedi and Jeremy Hodges.
(Updates with insolvency filing in second paragraph.)
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