Britishvolt, the UK electric vehicle battery start-up in which Scorpio Group invested last year as part of a proposed maritime initiative, has collapsed into administration after an attempt to rescue the group failed.
Last May Scorpio said it was making a strategic investment in Britishvolt as part of a proposed partnership to develop the company’s technology for shipping.
The companies did not disclose the size of the investment, but media reports then suggested it was in the “single-digit millions” of pounds.
Britishvolt said then that the prototype battery technology it was developing could help more polluting, heavy-duty modes of transport such as maritime and aviation cut their emissions.
But the battery company, which was promised £100m investment by the UK government to build a 30GWh battery plant in the northeast county of Northumberland, said today it had appointed EY as administrator and was making most of its 300 staff redundant as it ran out of operating funds.
Britishvolt said it had been searching for long-term backers since November and a £30m investment offer from a group of shareholders, including Glencore, was revealed last week, but the bid was refused by creditors.
The company was part of former prime minister Boris Johnson’s plans for a green industrial revolution with plans for the £3.8bn factory as part of a long-term vision to boost UK manufacturing of electric vehicle batteries and create around 3,000 jobs.
Dan Hurd, joint administrator and partner at EY, said the administrators would explore options for a sale of the business and assets.
