Administrators for the collapsed battery factory project Britishvolt have said they are still chasing money from the Australian buyer of the site and are considering other potential deals.
Recharge Industries is still “in default” a year after it agreed to buy the site in Cambois, Northumberland, where Britishvolt had previously said it wanted to build a factory, according to EY.
The administrators said they have “held discussions” with other potential buyers for the site. Northumberland county council is said to have set aside £15 million to buy back the land if needed.
The project never got far, but the promises made by Britishvolt were ambitious. It said that it could bring 8,000 jobs to the region and would supply a gigafactory producing batteries for electric cars — something seen as vital for the future of Britain’s car industry.
The nearly £4 billion plant had been promised about £100 million of government grants if it could reach certain milestones but collapsed at the start of last year.
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After Britishvolt fell into administration EY agreed a deal with Recharge Industries last February for the Australian battery start-up to buy the site for less than £10 million. Last summer it emerged that Recharge had missed some of the payments.
“The buyer continues to remain in default … and, as such, the joint administrators have held discussions with a number of additional parties who have intimated that they may be interested in acquiring the proposed gigafactory site in Northumberland,” EY said in a document lodged at Companies House.
The administrators said “negotiations are ongoing” but they were “unable to provide more detailed commentary given the commercial sensitivities surrounding these negotiations”.
Northumberland councillors have voted to approve a £15 million “strategic acquisition fund”, which could allow the council to take control of the land, according to the BBC. Britishvolt originally bought the site for £4.8 million.
Scott Dickinson, leader of the opposition Labour group on Northumberland county council, said it would be “embarrassing” if the council bought back the land at a higher cost than it had been sold for.
