The future of British battery firm Britishvolt is uncertain after the buyer, Recharge Industries, failed to make its final payment of £8.57m. The deal, which aimed to save the failed company and secure funding for battery research and manufacturing in the UK, was due to be completed on 5 April. However, the payment remains unpaid and overdue, according to administrator EY. Recharge’s parent company, Scale Facilitation, disputes the claim and says the timing of the payment is linked to a funding facility that will also cover the cost of land acquisition for the factory in Blyth. The company anticipates closing the deal in August after a period of due diligence.
The deal between Britishvolt and Recharge Industries included the use of Recharge’s preferred battery technology, licensed from American firm Charge CCCV (C4V), instead of the technology being developed under Britishvolt’s original ownership. Britishvolt aims to begin manufacturing energy storage cells by the end of 2025 and later expand its portfolio to include automotive clients. The company previously had memoranda of understanding with Aston Martin and Lotus. The remaining staff of Britishvolt have transferred to Recharge Industries.
Recharge Industries is yet to start manufacturing batteries in its home country of Australia. It currently has early-stage plans to build a gigafactory in Geelong, near Melbourne. The company aims to manufacture lithium-ion cells without using materials from China or Russia, reducing the risk to its supply chains amid increased geopolitical tension with these nations.
When the deal was reached earlier this year, David Collard, founder and CEO of Recharge owner Scale Facilitation, expressed confidence in making the Blyth gigafactory a success. He praised the region’s history and talent in manufacturing and engineering and highlighted the similarities between the Blyth site and Recharge’s site in Geelong. Collard emphasized the company’s commitment to supporting the region’s energy and ambition to become a major player in the international battery market.
Britishvolt went into administration on 17 January 2023, following months of difficulties. The company narrowly avoided collapse in November 2022 after securing funding from mining firm Glencore and implementing voluntary pay cuts for its staff. However, the UK government’s rejection of a request for £30m in advance funding led to the company’s decision to enter administration. The failure of Britishvolt prompted an inquiry by parliament’s Business, Energy and Industrial Strategy Committee into the viability of EV battery production in the UK and the country’s reliance on imported power sources.
According to a report by The Faraday Institution, the UK will need around 100GWh of battery supply by 2030 to meet the demand for EV production. This will require the establishment of five gigafactories, rising to nearly 200GWh and 10 factories by 2040. Currently, the only UK gigafactory with secured deals with a global cell supplier and a major manufacturer is Envision AESC’s planned expansion at the Nissan factory in Sunderland. The facility aims to produce 11GWh of batteries from 2024, eventually increasing to 38GWh to supply batteries for the next Nissan Leaf.
The uncertainty surrounding the completion of the deal between Britishvolt and Recharge Industries raises concerns about the future of battery research and manufacturing in the UK. The outcome of this situation will have implications for the country’s ability to meet the growing demand for EV batteries and establish a strong domestic supply chain. As the government and industry stakeholders continue to explore opportunities for investment and collaboration, it is crucial to address the challenges and ensure the long-term success of the UK’s battery industry.