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Business & Economy

Recharge Industries launches rescue bid for collapsed Britishvolt

A collapsed electric vehicle battery firm behind 3000-job factory plans could be saved.

Recharge Industries has tabled a bid for Britishvolt.

According to numerous reports, the Australian operator hopes to revive the business and its proposed £3.8 billion battery making plant at Cambois, near Blyth, Northumberland.

Britishvolt said the endeavour [pictured, above], would have capacity to build hundreds of thousands of electric vehicle power packs every year and support thousands of jobs, including 3000 direct roles and 5000 supply chain posts, on ex-Blyth Power Station land.

However, the blueprint was halted when Britishvolt ran out of cash, with the majority of its 300-strong workforce made redundant.

But it is understood Recharge Industries, which is also looking to build a similar factory close to Melbourne in its native Australia, believes it can resuscitate the venture.

Speaking to Australia’s Financial Review, David Collard, chief executive of New York-based investment firm Scale Facilitation, of which Recharge Industries is a portfolio company, said it was “critical” British and European supply chains remain secure.

He added: “Recharge Industries has done in 18 months what Britishvolt has struggled to do in three years.

“By combining, we can put the sort of acceleration into Britishvolt you’d expect from the best electric vehicle on the market.”

Britishvolt arrived in the North East with great vision and no little promise, but began to unravel last year when a request for a £30 million Government advance – as part of a wider £100 million Downing Street-led Automotive Transformation Fund deal – was refused.

The company – which previously secured deals with luxury marques Lotus and Aston Martin to develop technology for next generation sports cars – subsequently agreed an investor deal it said would provide “a bridge to a more secure funding position for the future”.

However, when further discussions failed, administrator EY-Parthenon was appointed to explore its sale.