Tue, 17 Jan 2023 | ADMINISTRATION
Administrators will explore sale options for the business and assets of battery cell technology firm Britishvolt Ltd, after talks aimed at rescuing the company failed. Accountancy firm EY will handle the process after Britishvolt filed notice to appoint administrators on Tuesday, January 17.
Earlier this month, Britishvolt confirmed it was in talks over a potential rescue deal which it said would "provide the company with the long-term sustainability and funding necessary to enable it to pursue its current plans to build a strong and viable battery cell R&D and manufacturing business in the UK".
A consortium of investors was in talks over a deal valued at around £160 million that would have seen investors acquire 95 per cent of the firm for £30 million (despite the business having been valued at around £774 million in February 2022), with £128 million committed to funding the firm’s future growth plans.
However, these talks appear to have failed, with EY saying the company had fallen into administration “due to insufficient equity investment for both the ongoing research it was undertaking and the development of its sites in the Midlands and the north east of England”.
The company had been planning a £3.8 billion gigaplant in Blyth, Northumberland, which, upon completion, was expected to create more than 3,000 jobs and a further 5,000 roles within its wider supply chain. The plant would have produced 30 gigawatt hours of batteries per year.
EY-Parthenon's Dan Hurd, Jo Robinson and Alan Hudson have been appointed as joint administrators of Britishvolt Ltd and will assess options for realising the value of the firm’s business and assets, which include R&D assets and intellectual property, before winding down and closing its affairs.
Joint administrator Dan Hurd commented: "Britishvolt provided a significant opportunity to create jobs and employment, as well as support the development of technology and infrastructure needed to help with the UK’s energy transition. It is disappointing that the company has been unable to fulfil its ambitions and secure the equity funding needed to continue.”
"Our priorities as joint administrators are now to protect the interests of the company's creditors, explore options for a sale of the business and assets, and to support the impacted employees."
Britishvolt Ltd, which was incorporated in 2019, was the main UK firm within the wider Britishvolt Group. No other subsidiaries within the group, including several UK-based entities, have entered administration.
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