#1 Britishvolt Crumbles: Electric Car Battery Startup Plummets into Administration, Devastating Job Losses Ahead

Britishvolt Appoints Administrators to Handle Insolvency

Britishvolt, a UK-based battery startup, has appointed administrators to handle its insolvency after it failed to secure a buyer or additional funding. The majority of the company’s staff, around 300, have been made redundant with immediate effect. This is a significant blow to the UK’s electric vehicle battery manufacturing industry and brings an end to months of uncertainty over the startup’s future.

GigaFactory Project in Northumberland Comes to a Halt

Professional services firm EY, which has been appointed joint administrator, said in a statement that Britishvolt became insolvent “due to insufficient equity investment” for its research, the development of its £3.8bn battery cell ‘gigafactory’ in Northumberland and sites in the Midlands.

Britishvolt had been facing the threat of administration and seeking new funding since October when the government rejected an advance of £30m of committed funds. This came after the firm’s founder, Orral Nadjari, was replaced as Britishvolt’s CEO and the delaying of battery production by six months.

In an attempt to stop an administration, employees at Britishvolt even agreed to an interim pay cut in November. However, all efforts proved to be in vain as the company failed to raise the necessary funds.

The Future of Britishvolt’s Assets and Intellectual Property

EY is now looking at options to sell the assets of the company, including intellectual property and R&D assets, in order to claw back some of the money for investors.

Britishvolt had been developing a £3.8 billion gigafactory in Blyth, Northumberland and had received tens of millions of pounds of financial backing from metals giant Glencore. However, it fell into emergency funding talks in November after revealing it was close to entering administration, and only managed to secure funding to keep it afloat in the short term.

The news of Britishvolt’s collapse is not only a disappointment for the company and its employees, but also for the UK’s efforts to transition to cleaner energy and reduce carbon emissions. The company had promised to create jobs and support the development of technology and infrastructure needed for the UK’s energy transition.

Business minister Kevin Hollinrake, said “there were clear milestones we expect anybody who’s received public money to hit and we are looking at the situation very carefully to make sure they are”.

Britishvolt’s Fall from Grace: From Ambitious Startup to Insolvency

It is a sad end for Britishvolt, which had ambitious plans to be at the forefront of the UK’s electric vehicle battery manufacturing industry. However, the company’s inability to secure sufficient equity investment ultimately led to its downfall. The joint administrators are now working on realizing the potential value in the business and assets of the company, including intellectual property and R&D assets, for the benefit of creditors.

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