Britishvolt is in talks to sell a majority stake to a consortium of investors, offering a potential lifeline to the troubled UK battery start-up.
The company has been trying for months to raise fresh funds and last year narrowly avoided administration after raising several million pounds from mining group Glencore and imposing temporary wage cuts on its staff.
In a statement on Monday, Britishvolt said it was “in discussions with a consortium of investors concerning the potential majority sale of the company”.
“The discussions aim to secure legally binding terms that would provide Britishvolt 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,” it added.
The company’s plan to build a £3.8bn battery gigafactory in the north-east of England has been beset by delays. Britishvolt has been promised £100mn in funding from the UK government but must begin construction work on the site in Blyth, Northumberland, to unlock the funding.
A sale would ensure Britishvolt’s survival until it receives firm orders from carmakers. The company last year shipped prototypes of its batteries to several manufacturers and has said it expects to receive the first orders this year.
The “two parties will provide further details at the appropriate time and have nothing further to add at this stage”, Britishvolt added.