Australian firm set to buy Britishvolt

Australian firm Recharge Industries, which is backed by US-based financiers Scale Facilitation Partners, has been named as the preferred bidder for Britishvolt. Britishvolt had planned to build a battery gigafactory near Blyth, Northumberland but ran into cashflow problems that became public in the last quarter of 2022.

Recharge Industries is building a facility in Australia to produce batteries for electric vehicles. On 3 February the company welcomed the Australian Minister for Industry and Science, Hon. Ed Husic MP’s, announcement regarding the Federal Government’s commitment to develop an Australian battery manufacturing industry.

Little detail has emerged on its plans for the Britishvolt business, which had hoped to build a £3.8 billion factory.

BBC business editor, Simon Jack, commented: “Building this battery plant is seen as absolutely vital to securing the future of UK car manufacturing. But the last time an ambitious start-up, with unproven technology led by people unheard of in the battery and car world, attempted this it ended up in the spectacular failure of Britishvolt, which collapsed into administration last month.

“Winning the bid to buy Britishvolt out of administration, Recharge Industries conceded they had paid a premium over the other bidders, but said that was indicative of their confidence in a project that would bring together Australian minerals, US battery know-how and a promising UK site.”