Britishvolt: Australia's Recharge Industries finalises acquisition deal
Recharge Industries is also developing Australia's inaugural large-scale lithium-ion cell production plant
Australia's Recharge Industries on Monday announced its acquisition of Britishvolt, the startup that has faced difficulties in securing funding for a £4 billion electric vehicle (EV) battery factory near Northumberland's Port of Blyth.
Recharge Industries was chosen as the preferred buyer for Britishvolt earlier this month.
Britishvolt had intended to construct its 30GWh factory in stages to capitalise on the increasing demand for EVs prior to the UK's 2030 prohibition of new petrol and diesel automobiles.
The factory was projected to provide employment for roughly 3,000 people once it was fully operational.
However, Britishvolt went bankrupt in January due to insufficient funds, with its failure attributed to a lack of expertise in battery technology, unproven technologies, a shortage of customers, and insufficient revenue.
While the British government had provided £100 million in conditional financing, the company was unable to meet several criteria.
The new agreement reignites the possibility of the construction of "gigafactory" in Blyth, which will eventually help to revitalise the British automotive industry and supply the UK's next generation of domestically produced electric vehicles.
Recharge Industries, which is privately owned by New York-based investment fund Scale Facilitation, specialises in battery technology, with a focus on research and development as well as production.
It is based in Geelong, Australia, and is currently developing Australia's inaugural large-scale lithium-ion cell production plant.
This company aims to offer safer, more efficient, and eco-friendly batteries, while also investing in the development of cutting-edge solutions for real-world and emerging energy storage requirements.
Recharge Industries has indicated that it will retain the Britishvolt brand name, although it has different plans for the future.
Its initial emphasis will be on manufacturing batteries for energy storage purposes, with a goal of making these products available by the close of 2025.
After the rollout of its energy storage batteries, Recharge Industries plans to commence production of batteries designed for high-performance sports cars.
"Backed by our global supply chain, strategic delivery partners and a number of significant customer agreements in place, we're confident of making the Cambois Gigafactory a success and growing it into an advanced green energy project," Scale Facilitation chief executive David Collard said.
"We have the right plan in place, to match and support the region's energy and ambition to become a major player in the international battery market."
According to EY, the administrators of Britishvolt, the firm was sold for an undisclosed amount, and its remaining staff will be transferred to Recharge Industries as part of the agreement.
"The sale of the business will help to support the development of technology and infrastructure needed for the UK's energy transition," it said.
The production of batteries has been a major concern for the UK automotive industry. Presently, the UK has just one battery plant, which is owned by a Chinese company and is located close to the Nissan factory in Sunderland.
The European Union, in comparison, has 35 battery plants under construction or planned.
Recharge Industries intends to construct lithium-ion batteries that do not contain materials from China or Russia, thereby mitigating potential supply chain complications.