Britishvolt Ltd. is expected to go into administration Tuesday, according to people familiar with the matter, 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 expected to go into administration Tuesday, according to people familiar with the matter, in a blow to the UK’s hopes that a homegrown battery maker will emerge to supply its shrinking auto industry.
The company has scheduled an all-staff call for around noon local time in London, where it’s expected to file for insolvency, said the people, who asked not to be named as they were speaking ahead of the meeting.
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.
The 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.
With backing from mining giant Glencore Plc and the UK government, Britishvolt was viewed as a key part of the country’s drive toward an electric-car manufacturing boom. While the company 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.
Related: The UK Car Industry’s Prospects Are Going From Bad to Worse
(Updates with details starting in the third paragraph.)
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