(Alliance News) - Electric car battery company Britishvolt has fallen into administration and made the majority of its 300 staff redundant, administrators have confirmed.

The company, which had plans to build a gigafactory to make the batteries in Northumberland, has appointed administrators at EY after failing to raise enough cash for its research and the development of its Cambois site.

It comes after months of trouble as the company struggled to raise enough money to stay afloat. A week ago the group said it was in talks with potential investors.

"The company has entered into administration due to insufficient equity investment for both the ongoing research it was undertaking and the development of its sites in the Midlands and the North East of England," EY said on Tuesday.

"The joint administrators are assessing the options for realising the potential value in the business and assets of the company, including intellectual property and R&D assets, for the benefit of creditors.

"The administrators will subsequently implement an orderly closure and winding down of the company's affairs, as required.

"As a result, regrettably, the majority of Power by Britishvolt Limited employees have been made redundant with immediate effect.

"All those impacted are being offered appropriate support and advice."

Last Monday, the company said it was seeking a deal with a consortium of investors to purchase a majority stake in Britishvolt and secure its future.

The group's board held further talks, but decided on Monday there were no current viable takeover offers.

The start-up has been developing a GBP3.8 billion gigafactory in Blyth, Northumberland, and received tens of millions of pounds of financial backing from metals giant Glencore.

But it fell into emergency funding talks in November after revealing it was close to entering administration, and managed to secure funding to keep it afloat in the short term.

Britishvolt has around 300 existing employees who agreed to a voluntary salary cut for November to help reduce costs.

Ian Levy, Tory MP for the red wall seat of Blyth Valley, said he will continue to ask the government to support the Northumberland Britishvolt site.

He said: "Our area needs this investment and the jobs that will bring, and I will be asking the government to stand by the offer of financial support from the Automotive Transformation Fund for any consortium able to put together a full package.

"I will work tirelessly with the government and the council to attract potential investors to the site to make sure a major project goes ahead."

The Unite union said the government was guilty of "a total abdication of leadership" over the UK's electric car battery manufacture sector.

National officer for the automotive sector, Steve Bush, said: "This is a grim day for the North East and for the just transition to the electrification of the nation's automotive sector.

"The complete lack of a competent industrial strategy by the Government to protect jobs in the UK automotive sector is becoming potentially more catastrophic by the day."

Earlier on Tuesday, Downing Street said that it was aware of speculation surrounding the company, but said it would await updates from Britishvolt itself.

The prime minister's official spokesman said: "We continue to take steps to ensure the UK remains one of the best locations in the world for automotive manufacturing as we transition to electric vehicles."

Kevin Hollinrake, a business minister, said: "It's important to note that we have not withdrawn any money from Britishvolt but clearly taxpayers money is important. It's important that we dispense that money in a responsible way.

"There were clear milestones we expect anybody who's received public money to hit and we are looking at the situation very carefully to make sure they are."

Jonathan Reynolds, Labour's shadow business secretary, said: "The Government's long-term failure on industrial strategy means we're losing the global race for electric vehicle battery manufacturing putting our world-famous car industry at risk.

"Under this government local communities are watching businesses shutting their doors, job opportunities going abroad and investment leaving Britain."

source: PA

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