The company planning to build a multibillion-pound gigafactory in Northumberland has announced it has scrapped plans for a second site in North America to focus on its plans closer to home.
Britishvolt has been working on a £3.8bn gigafactory in Cambois which it hopes could produce hundreds of thousands of electric vehicle batteries, while directly employing up to 3,000 workers. and 5,000 more in its supply chain. However, the firm has been engaged in emergency funding talks in recent weeks and is not yet able to draw down on Government funding of around £100m, which was first pledged earlier this year.
The firm had also planned to build a second factory in Quebec, Canada – potentially twice the size of its planned North East operation at 60GWh plant. Now, however, the company has confirmed it has ditched its plans for North America, where three members of staff had been working from an office in Montreal, to focus on its Blyth business.
Read more: HMRC in High Court bid to wind up Seaham energy broker Great Annual Savings
The move comes as it continues to explore funding options, to top up extra cash given by an existing investor last month. A Britishvolt spokesman also confirmed that top executives will not take salary payments next month.
Britishvolt spokesman said: “The C-suite team will not draw their full salaries in December, but all other employees will receive their monthly renumeration as per usual. We want to thank our employees again for their commitment to the business in November and for their continuing belief in Britishvolt and what our company stands for.
“Britishvolt confirmed in early November that it had decided to withdraw from its previous plan to construct a battery cell gigaplant in the Bécancour Industrial Park in Quebec, Canada. This was a difficult decision to take given the growing interest from potential battery cell customers in Canada, the positive engagement of the Quebec Government, and the important role the country plays in the North American auto and aeronautical sectors.
“It also is the case that the recent US Inflation Reduction Act, with its commitment to spend $391 billion on energy and climate change initiatives, is having an impact on the economic viability of largescale climate projects in other parts of North America, including potentially battery cell gigaplant construction.
Most Read
“Having a strong footprint in North America remains a key part of Britishvolt’s business growth strategy and we still hope that we can return to discussions in Canada at some point in the future.”
While the Government has agreed to back the gigafactory plans, it says Britishvolt must meet key criteria before it can draw down any funds.
Wansbeck MP Ian Lavery spoke in Parliament earlier this month, challenging the Government over its lack of financial support for the project.
He told the Britain’s Industrial Future debate, held in the Commons on November 15: “Britishvolt, a promising start-up company that is seeking to build a gigafactory in Wansbeck, is on the brink of collapse because the Government have not come forward with a promised £100m grant from the automotive transformation fund. In my constituency, 8,000 jobs have been promised, but the Government will not listen.
"Why are the Government not even sitting down with Britishvolt to agree a way forward? We talk about levelling up in a constituency like mine—there would be 8,000 jobs, of which 3,000 would be with Britishvolt developing electric batteries. That is the future. We have been left behind for generations and there is an opportunity for 8,000 jobs. We have to conserve that.”
READ NEXT