The UK battery start-up Britishvolt, which failed last month, has picked an Australian company as its preferred bidder.
Recharge Industries and Britishvolt have agreed to buy each other's businesses and assets. Recharge Industries is owned by the New York fund Scale Facilitation Partners. Britishvolt ran out of money and was placed under administration. It intended to construct a sizable factory close to Blyth, Northumberland, to manufacture electric car batteries.
The completion of the deal is anticipated to take place within the next seven days, according to EY, the accounting company that is also Britishvolt's administrator and has been monitoring the sale. In Australia, Recharge Industries is constructing a factory to make batteries for electric vehicles. There hasn't been much information released about its plans for the Britishvolt, which had wanted to construct a £3.8 billion factory as part of a long-term ambition to increase the UK's production of electric vehicle batteries.
It was thought that it would generate 3,000 high-paying jobs. Instead, when Britishvolt failed, more than 200 employees lost their employment. It often had to postpone the start of production at the plant; most recently, it cited that tough external economic headwinds including high inflation and rising interest rates.