In what turns out to be a major blow to cleaner and cheaper transport, U.K. battery start-up Britishvolt is filing for administration, a move that will also see the majority of its 300 employees lose their jobs immediately.
According to a report by the BBC, the company told its employees at an all-staff meeting, that it will be filing for administration.
The development comes after the group failed to raise funding from investors.
“The news that Britishvolt is filing for administration is deeply disappointing, and a blow to the UK’s transition to cleaner, cheaper transport,” said Ben Nelmes, Chief Executive of New AutoMotive, the independent green motoring consultancy. “Delays to the government's Zero Emissions Vehicle (ZEV) mandate have created additional uncertainty around rates of EV uptake and future demand for EV batteries.”
Nelmes further said that the Government urgently needs a green industrial strategy to prevent the trickle of bad news about the U.K. car industry turning into a torrent in a few years' time.
Britishvolt had planned to build a giant factory to make electric car batteries in Northumberland and was part of a long-term vision to boost UK manufacturing. But the company could not find viable bids to keep its plans afloat.
In November, the group secured near-term investment to bridge for a few weeks following the recent speculation concerning its future.
The company said at the time that the weakening economic situation is negatively impacting much business investment at present, but it is continuing to pursue positive ongoing discussions with potential investors.
Industry experts say the U.K. will need several battery factories to support the future of UK car making as petrol and diesel engines are phased out over the next decade.