Britishvolt’s new owners pivot from cars in blow to industry

THE new owner of Britishvolt has announced plans to pivot the business to making cells for energy storage, raising fresh doubts over whether Britain’s car industry will be able to support itself with parts in the transition to electric.

Recharge Industries, the Australian company that has bought the assets of collapsed Britishvolt, will also make batteries for the defence industry and sports cars, but is shifting away from a focus on fuel cells for mass market vehicles.

The news is a blow for Britain’s automotive industry, which has been warning that manufacturers face an uncertain future without a steady supply of locally made batteries.

Batteries are the single costliest component of an electric family car and industry executives are concerned about the long-term viability of car making in Britain if these crucial components are not made near manufacturing sites.

Recharge Industries yesterday completed the acquisition of Britishvolt’s research and its prototype batteries but has yet to buy the site where the company had planned to build a gigafactory.

The 235-acre plot in Blyth, Northumberland, is seen as one of the most promising sites for a battery plant in the UK since it has port access and is close to a railway.

Recharge Industries has until March 31 to buy the site. It has said it plans to manufacture in the UK under the Britishvolt banner.

David A Collard, founder and chief executive of New York-based Scale Facilitation, which owns Recharge Industries, told the BBC that Britishvolt would now build batteries to store surplus power from renewable sources to sell back to the grid.

The company also has technology applicable to batteries for the defence industry and it has already supplied the Royal Navy through a subcontractor, he claimed.

Recharge Industries declined to comment further.

Mr Collard said: “Our proposal combined our financial, commercial, technology and manufacturing capabilities, with a highly credible plan to put boots and equipment on the ground quickly.”

His company is already progressing plans for a battery factory in Geelong, Australia, and Recharge Industries said it is confident of turning Britishvolt into “an advanced green energy project”.

More than 200 staff lost their jobs when Britishvolt collapsed last month. The company was backed by Glencore and had billed itself as the UK’S battery champion. It attracted support from former prime minister Boris Johnson and the Government had earmarked £100m for the company.

However, ministers were reluctant to hand over money after milestones were not met.