Britishvolt is locked in emergency fundraising talks to stave off a collapse.
The government-backed battery firm is developing a £3.8bn gigafactory in Northumberland, having secured investors including Tritax and Abrdn. However, it is now on the brink of insolvency after the economic crisis caused it to race through cash reserves.
Britishvolt had applied to the Department for Business for £30m in emergency funding, but the plea was rejected by secretary of state Grant Shapps. The government has set aside about £100m for Britishvolt through its Automotive Transformation Fund, but the cash can only be taken in stages when the development of the factory at Blyth hits certain milestones.
Britishvolt has lined up accountancy firm EY to carry out an administration if necessary.
However, reports are claiming that a last-minute, short-term deal may have been agreed with one investor, but that will only buy the firm a few more weeks. Britishvolt has also been courting buyers, ranging from Tata Motors to Tesla.
