Britishvolt gigafactory files for administration

Britishvolt's proposed gigafactory in north east England has filed for administration, after hopes for a last-minute rescue bid failed.

The majority of its 232 staff have been made redundant with immediate effect.

Britishvolt had planned to build a giant factory to make electric car batteries in Blyth, Northumberland, and it was supported by ministers who saw it as a "levelling up" opportunity and support the future of UK car making.

However Britishvolt struggled to make a profit and ran out of money.

It is thought that the UK will need several battery factories to support the future of UK car making as pure petrol and diesel engines are phased out over the next decade.

Frank Gordon, Director of Policy at the Association for Renewable Energy and Clean Technology (REA) said: “The news that Britishvolt has filed for administration is a real shame – this highlights the need for an effective UK industrial strategy and supply chain support (similar to the U.S.’s Inflation Reduction Act) to capture the huge opportunities of Net Zero. Chris Skidmore’s Net Zero Review report made clear the opportunities and imperative of doing so just last week.

“Our thoughts are with the staff and affected families in the result of any redundancies and we hope that another player may take up this project as the location is widely seen as ideal for the production of batteries.
 
“The UK needs at least three such gigafactories and we must now urgently see progress towards this in order to get to Net Zero.”