UK startup Britishvolt bought by Australian firm
Recharge Industries, an Australian company, has acquired the bankrupt Britishvolt battery maker.
Britishvolt had planned to construct a £4bn battery plant near the Port of Blyth in Northumberland, but it failed last month due to insufficient funds, battery expertise, reliable technology, customers, and revenue.
Recharge Industries is a startup with limited manufacturing experience, and it shares similarities with Britishvolt in that regard.
The parent company of Recharge Industries is Scale Facilitation, an investment fund based in New York. According to David Collard, the Australian CEO of the fund, they are bringing verified technology to the table, which has already been certified by the US defence industry and is being used by the UK navy through a subcontractor.
Same name different plans
Despite retaining the Britishvolt brand name, the new owners have distinct plans for the company’s future.
Initially, the firm will focus on producing batteries for energy storage, with the aim of launching these products by the end of 2025. After that, it plans to manufacture batteries for high-performance sports cars.
Despite the potential for a much-needed plant that could supply batteries to high-volume car manufacturers in the UK, this prospect is many years away. This has caused concern among government officials and those in the automotive industry, who worry that the new owners won’t be able to deliver what UK industry needs without the involvement of major manufacturers such as Ford, GM, JLR, and BMW.
However, Recharge Industries CEO David Collard believes that his company has big ambitions and that all successful companies have to start somewhere. He has already fostered relationships with government and opposition leaders in his hometown of Geelong, near Melbourne, where the company plans to build a similar plant.
Although he has yet to develop the same level of connections in the UK, he has engaged with the owners of the Northumberland site and has spent considerable time with Northumberland County Council, which he says genuinely wants a gigafactory for the benefit of its people.
Collard acknowledges that he might not be the best person to run the project, but he believes that the administrators had a legal obligation to get the best return for creditors. He also thinks that they care about what the future holds for the company. The deal was finalised just days after Levelling-Up Secretary Michael Gove announced £20.7m in funding for Blyth.
Could be great for UK economy
EY, the administrators of Britishvolt, announced that the defunct battery maker had been sold to Recharge Industries for an undisclosed amount. The remaining employees of Britishvolt will become part of Recharge Industries as part of the deal. EY said that the sale of the business will help support the development of the technology and infrastructure required for the UK’s energy transition.
The collapse of Britishvolt had resulted in the loss of over 200 jobs and was viewed as a setback to the government’s “levelling up” agenda initiated by former Prime Minister Boris Johnson. The government had pledged £100m to the previous owners of Britishvolt if they met specific construction targets.
‘Wants broad political support’
Recharge Industries CEO David Collard stated that he would welcome government funding but wanted broad political support, something he already had in Australia and the US. Although the site is “shovel ready,” it will be six to twelve months before work begins there.
Collard hopes that ultimately the site will create up to 8,000 jobs both on-site and in the supply chain, which would be a significant boost to the region and the UK economy. However, at present, this project does not appear to address the UK’s immediate needs for car batteries, with only one Chinese-owned battery plant located near the Nissan factory in Sunderland. In contrast, there are 35 battery plants already under construction or planned in the European Union.
