Talks under way to save Britishvolt and its plans for £3.8bn gigafactory in Northumberland

The firm, which hopes to build a £3.8bn gigafactory in Cambois and create thousands of new jobs in the process, came close to collapse late last year.

However, it managed to stave off administration by securing short-term funding. Staff also agreed to a temporary pay cut to help it balance its books.

An announcement about Britishvolt’s future was expected to be made in the new year, but all it would disclose today (Monday) was that it was talking to a number of investors about selling a majority share of the business.

The firm said in a statement: "Britishvolt is in discussions with a consortium of investors concerning the potential majority sale of the company.

"The discussions aim to secure legally binding terms that would provide Britishvolt with the long-term sustainability and funding necessary to enable it to pursue its current plans to build a strong and viable battery cell R&D and manufacturing business in the UK."

Britishvolt was promised £100m worth of government funding a year ago by the-then Business Secretary Kwasi Kwarteng, who labelled the development as “exactly what levelling up looks like”.

However, the cash has yet to materialise.

Britishvolt has also struggled financially due to what it described as “rampant” inflation and the soaring cost of energy, which has led to production being pushed back to mid-2025.

Blyth Valley MP Ian Levy said: “I wish Britishvolt every success with their investment discussions. I have been a strong supporter of this project which is so crucial to the future of the UK automotive sector.

"The site on the Blyth Estuary remains the best site in the UK for an electric vehicle battery gigaplant with a deep water port, excellent power connections, access to a strong workforce, and good transport links.

"I am in regular contact with the company and look forward to hearing more details.”

A sale would mean Britishvolt could continue with the development of the Northumberland factory until it can begin making money from selling its batteries to carmakers.

There were no details in the statement on Monday of the identity of the investors involved, or how much the sale could be worth.

The firm added that it, and the consortium of investors, would provide further details at the "appropriate time".

Wansbeck MP Ian Lavery said: “I have been in contact with the Chairman of Britishvolt in the past week who has confirmed reports that they are in discussions with a consortium of investors regarding a majority sale of the company.

“While there is nothing yet confirmed, this is a crucial development that keeps the hope of a gigafactory being built on the site in Cambois that will create thousands of much needed jobs for the region.

“Nevertheless, it is disappointing that it has come to this and I acknowledge the efforts of all concerned at Britishvolt over the past couple of years in trying to make this gigafactory a reality.

"They have been let down time and time again by the government who have left the project to the whim on market forces rather than taking control to ensure this crucial project for a long held back region went ahead.

“I am continuing to monitor the situation closely and look forward to working with any future investors to get this project moving as quickly as possible.”