Battery firm Britishvolt secures funding lifeline to avert collapse

Troubled battery firm Britishvolt has secured short-term funding to allow it to continue to operate.

The company, which has been developing a £3.8 billion gigafactory in Blyth, Northumberland, said the fresh investment will enable it to “bridge over the coming weeks to a more secure funding position for the future”.

However, it said employees have agreed a voluntary salary cut for November to help reduce costs.

The firm had been in urgent talks to secure financing in order to avoid a potential administration.

Advisors from EY had been lined up in case the company needed to enter insolvency.

The firm confirmed on Wednesday that discussions had been successful to preserve its short-term future.

Nevertheless, the group is continuing to seek further investment to secure the longer-term viability.

The Government backed the plans for the firm’s gigafactory in January and said it would support Britishvolt with undisclosed funding, understood to be around £100 million. However, the firm has not yet received this funding.

Britishvolt has also received tens of millions of pounds of financial backing from FTSE 100 metals firm Glencore.

In a statement, Britishvolt said: “We want to thank our employees, suppliers and investors for their continuing belief in Britishvolt.

“It is important that Britishvolt is a success not only for the close to 300 employees currently working for the company, but also for the many thousands of jobs we intend to create in the UK as we progress our plans.

“The ‘Britishvolt effect’ is also of huge strategic importance to UK plc and the country’s standing on the global battery stage.”