Britishvolt administrators begin talks with possible new buyers for factory site

23 February 2024 , 09:10

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Britishvolt had ambitious plans for the site, promising it could bring about 8,000 jobs to the region and house a gigafactory producing batteries for electric cars (Image: PA Archive/PA Images)

The administrators for the failed battery factory project, Britishvolt, have revealed they are in discussions with potential new buyers for the factory site.

EY stated that Recharge Industries, the Australian buyer of the Cambois, Northumberland site, is still "in default" a year after agreeing to the sale. The BBC reported on Thursday that Northumberland Council might set aside funds to potentially purchase the site.

Britishvolt had ambitious plans for the site, promising it could bring about 8,000 jobs to the region and house a gigafactory producing batteries for electric cars a crucial component for the future of Britain's car industry. The planned £4 billion plant was promised around £100 million of Government grants if it could reach certain milestones.

However, the project collapsed early last year without much progress. After Britishvolt went into administration, EY struck a deal with Recharge Industries last February.

The agreement would see the Australian firm buy the Northumberland site for less than £10 million. However, it was revealed last summer that Recharge had missed some of the payments on the site. EY, the administrators, stated in a document added to Companies House on Thursday: "The buyer continues to remain in default ....and, as such, the joint administrators have held discussions with a number of additional parties who have intimated that they may be interested in acquiring the proposed gigafactory site in Northumberland,"

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They also said that "negotiations are ongoing" with potential other buyers. We are unable to provide more detailed commentary given the commercial sensitivities surrounding these negotiations," they added.

On Thursday, the BBC reported that Northumberland councillors have agreed to a £15 million "strategic acquisition fund", which could allow the council to take over the land. Britishvolt originally purchased the site for £4.8 million.

Lawrence Matheson