Plans for a gigafactory in the North East that would produce batteries for electric vehicles are close to collapse, reports say.
The Britishvolt scheme to build a gigafactory near Blyth, Northumberland, is aiming to create 3,000 direct jobs and another 5,000 in its supply chain. But the company admitted earlier this month that it was in emergency talks over funding, and new reports say the company is considering going into administration.
Britishvolt has declined to comment on the reports and says it is “working on several potential scenarios that offer the required stability.” The company hopes to produce more than 300,000 lithium-ion batteries a year on the site of the former coal yards of the old Blyth Power Station.
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But now there are fears that the huge costs of setting up the factory have proved too great for a company that was only set up less than three years ago. Earlier this month it admitted that its plans have been “refocused and sharpened given the negative global economic situation” after a number of delays to the project.
Britishvolt’s chairman Peter Rolton was seen in talks with then Cabinet Minister Anne-Marie Trevelyan, Blyth Valley MP Ian Levy and senior Northumberland councillors 10 days ago amid fears over Government funding for the scheme.
The company statement released this morning said: “We are aware of market speculation. We are actively working on several potential scenarios that offer the required stability. We have no further comment at this time.”
The Britishvolt site at Cambois is widely regarded as one of the UK’s best locations for a battery gigafactory due to its position close to a port, nearby road and rail links, and the availability of renewable energy sources. With the UK’s transition dependent on the country having five or six battery plans, the hopes will be that another company would take over the gigafactory site if Britishvolt fails to bring its plans to fruition.
Wansbeck MP Ian Lavery, whose constituency includes the Cambois site, said: “I have today written to Grant Shapps, the current Secretary of State for Business, Energy, & Industrial Strategy, asking for an explanation as to why the government, who were once so supportive of Britishvolt’s plans to build a gigafactory in Cambois, have failed to give them the support that they need to create thousands of jobs in my constituency and the surrounding area.
“In 2019 Boris Johnson was elected on a platform to level up the North East and hailed Britishvolt as a key example of this flagship policy making progress. The potential collapse of Britishvolt is symbolic of the failures of the past few years and the empty promises made regarding levelling up by the likes of Johnson, Truss and now Sunak. Now it is the people of South east Northumberland, a long held back region, that will be left feeling the consequences.
“I have urged the government time and time again to take matters into their own hands to secure thousands of much needed well paid jobs in our region and to get ahead in an emerging market that will be important for meeting our climate targets. Unfortunately they simply have not listened, once again sideling the interests of the North East for other priorities.”
A spokesperson for the Department of Business, Energy and Industrial Strategy, said: “We are determined to ensure the UK remains one of the best locations in the world for automotive manufacturing as we transition to electric vehicles, while ensuring taxpayer money is used responsibly and provides best-value. We do not comment on speculation or the commercial affairs of private companies.”
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