Fears battery factory could be another 'false dawn' for south east Northumberland

Labour’s Cllr Alex Wallace, who represents the Sleekburn ward that includes the town of Cambois, made the comments after it was revealed by administrators a deadline to acquire Britishvolt had been missed.

Recharge Industries, the firm looking to buy Britishvolt after the latter fell into administration, failed to make the final instalment in the £8.6m deal to administrators EY.

The failure has put Recharge in “default” on the deal, according to the administrators. While Recharge dispute this, the issue marks the latest in a series of setbacks for the much-anticipated project in recent years.

It is understood that Recharge still hopes to complete the deal and is trying to finalise financing for the project, with a view to doing so this month.

Cllr Wallace claims that people in the town and the wider area were becoming frustrated with the lack of progress.

He said: “I can’t have confidence in this at the minute. We have promised people work there for the last 18 months and nothing has happened – it’s really, really sad.

“I have used the term false dawn so many times, but this is the biggest. When I go to the pub and to the shop people ask me about it and I can’t answer – it’s not right. We need information.

“I just hope it comes here. People are frustrated. We’ve got everything happening here, with the rail link and the buses increasing from four a day to 12.

“This was all because of the gigafactory. If we don’t get bums on seats, the bus company will walk away. We need this to happen.

“It looked so good, but now it is just the opposite.”

Responding to Cllr Wallace’s comments, a spokesman for Northumberland Conservatives said: “Northumberland County Council, under this Conservative-run administration is committed to the development of the site.

“We will not make a running commentary regarding the acquisition or otherwise of the former Britishvolt assets for obvious commercial and confidential reasons.”

Last week, Recharge said it hoped to close the deal in August, with hopes it could close a “funding facility” that would allow it to buy Britishvolt, the site at Cambois and provide “working capital” for the project.

In a statement issued on August 9, a spokesman for the company said: “The timing of the final instalment to the administrator is linked to a funding facility which when closed, will also cover the cost of the land acquisition and provide additional working capital for the project.

“The financier is in direct contact with the counterparties and we anticipate to close in August following a period of significant due diligence. We dispute we are in default of the BSA (business sale agreement). Closing out the transaction will allow for the allocation of highly valuable intellectual property and binding customer orders to fast track the UK project.”

Recharge Industries has been contacted for a response to Cllr Wallace’s remarks.