Britishvolt: Local reaction to confirmation that firm hoping to build £3.8bn Cambois gigafactory has entered administration

The electric car battery startup made the majority of its 300 staff redundant and appointed EY as administrators on Tuesday.

The firm had hoped to build a £3.8bn gigafactory to produce batteries in Cambois, near Blyth, but has been struggling financially in recent months.

Blyth Valley MP Ian Levy said: “I have been a big supporter of this project to build a gigafactory on the Blyth Estuary and despite the disappointing news about Britishvolt I will continue to champion this opportunity.

“Our area needs this investment and the jobs that will bring and I will be asking the government to stand by the offer of financial support from the Automotive Transformation Fund for any consortium able to put together a full package.

“I will work tirelessly with the government and the council to attract potential investors to the site to make sure a major project goes ahead.

“The UK automotive industry’s need for a battery gigafactory remains and the site on the Blyth Estuary is still the best in the country with a large area, excellent power connectivity, a deep-water port, strong workforce supply, and easy access to the national road network.”

Britishvolt had secured short-term funding in November to stave off administration, and staff had taken a temporary pay cut the same month.

It had asked the government for £30m of a promised £100m to be paid early, but this request had been refused.

Discussions to sell a majority share of the business had been ongoing, but it was reported this morning that no bids had been deemed viable.

Wansbeck MP Ian Lavery said: “The reports that Britishvolt has gone into administration following a number of failed takeover bids is extremely disappointing and a massive blow for the region which was set to benefit from the thousands of much needed jobs the project promised to create.

“This development was once the crown jewel of the government’s levelling up policy in the North East but is now in grave danger of collapsing.

“Back in July Boris Johnson, when he was the Prime Minister, told me that the cheque was in the post to Britishvolt, but the reality is it has never received a penny from the government.

“If they are serious about levelling up the North East, the government needs to put its money where its mouth is and get behind a gigafactory being built on this site in Cambois.”

Northumberland County Council leader Glen Sanderson said: “This is extremely disappointing news for all those connected with the company and those who have lost their jobs, and also those who have lost their dream of working here.

“It’s also a blow for the communities in and around Cambois, the county, and the wider region.

“However it is a hugely valuable site with so much potential and the council has done everything it can over the past two years to support the company.

“We are determined to find a new investor for this site in an area which has a growing track record in attracting high-tech industry and high quality jobs.

“We will continue to work with Government to pursue our growth ambitions and are doing everything we can to bring forward the jobs and investment that are so important for Northumberland.

“When we undertook the sale of the land we took care to ensure a number of safeguards were put in place, including a buy back option on the site for our original selling price, if a battery plant is not built there.”

John McCabe, chief executive of the North East England Chamber of Commerce, said: “The collapse of Britishvolt and this missed opportunity is extremely disappointing news for the region.

"My thoughts are with all of the employees who have lost their jobs and I hope they will all find good employment in the region very soon.

"The Cambois site has great potential thanks to the exceptional local workforce, its scale and the surrounding electrical and logistical connectivity.

"The North East remains a fantastic place to invest in the creation and growth of businesses. We must learn the lessons of the Britishvolt experience and work together as a region to welcome future investment opportunities and ensure they are brought to fruition.”

The North of Tyne elected mayor, Jamie Driscoll, said: "We've been investing in Blyth, in the port infrastructure, a major skills training facility, creating thousands of jobs in green industries other than Britishvolt.

"Sadly, it wasn't to be for Britishvolt – my thoughts go out to their staff. This is still the best site in the country for a gigafactory and I'm sure we'll see interest in it."