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National
Graeme Whitfield

Inquiry launched into UK battery production after Britishvolt collapse

Parliament’s business committee has launched an inquiry into UK electric vehicle battery production after the collapse of the Britishvolt project in Northumberland.

The Business, Energy and Industrial Strategy Committee said its inquiry will look into the supply of batteries for electric vehicle manufacturing in the UK and the viability of production in the UK. The probe was announced just hours after electric car battery firm Britishvolt went into administration and made most of its 300 staff redundant.

The company, which had plans to build a gigafactory to make batteries at Cambois, Northumberland, brought in administrators from accountancy group EY after failing to raise enough cash to maintain its operations. Administrators said they are considering options which could include the sale of certain assets and intellectual property.

Read more: Britishvolt calls in administrators

The collapse follows months of trouble as the company struggled to raise enough money to stay afloat. Recent turbulence in the UK electric vehicle sector also saw BMW announce in October that it would be halting production of the electric Mini at its Oxford site.

Darren Jones, chair of 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’re falling significantly behind on compared to other parts of the world.

“This inquiry will look at what’s 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.”

Last Monday, the company said it was seeking a deal with a consortium of investors to purchase a majority stake in Britishvolt and secure its future. The group’s board held further talks but decided on Monday there were no current viable takeover offers.

The start-up has received tens of millions of pounds of financial backing from metals giant Glencore, along with other investors. It was also promised £100m in Government funding, but that was conditional on it reaching certain targets, and no money was paid out.

Unions have criticised the Government lack of support for the project and the wider UK automotive industry, while local politicians are now pushing for ways to revive the gigafactory project under different owners.

North of Tyne mayor Jamie Driscoll said that “This is still the best site in the country for a gigafactory and I’m sure we’ll see interest in it” while Blyth Valley MP Ian Levy said he would “work tirelessly with the Government and the council to attract potential investors to the site to make sure a major project goes ahead.”

Northumberland County Council has revealed that it has a buy back option on the site if a battery plant is not built there, raising the possibility that it could be brought into public ownership.

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