Britishvolt: Business Select Committee launches inquiry into electric car battery industry following collapse of Cambois gigafactory startup

The start-up had planned to build a £3.8bn battery manufacturing gigafactory in Cambois, near Blyth, but was forced to appoint administrators on Tuesday.

The Business, Energy and Industrial Strategy Select Committee announced their inquiry into the industry the same day, with the Britishvolt news cited as an example of recent setbacks for the sector.

Labour MP Darren Jones, who chairs the committee, said: “The future of car manufacturing in the UK is dependent on our ability to make electric vehicles, and to be able to export them into the EU.

“That means we need local supplies of electric vehicle batteries, something we are falling significantly behind on compared to other parts of the world.

“This inquiry will look at what is holding back the development of electric car batteries in the UK and what needs to be done to protect the thousands of jobs across the country in this important sector.”

Britishvolt had asked the government for £30m of a promised £100m in funding to be delivered early, but this request was denied.

They managed to secure short-term funding to stave off administration in November from private investors, but were unable to successfully negotiate the sale of a majority share in the firm that would offer long-term security.

There has been disappointed reaction to the news of Britishvolt entering administration, but some hope that the site may present an opportunity for another investor.