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Northumberland battery firm Britishvolt considers administration

Troubled UK battery start-up Britishvolt is preparing to potentially fall into administration with almost 300 jobs at risk.

The company has been developing a £3.8 billion gigafactory in Blyth, Northumberland, which it had hoped would employ up to 3,000 workers.

However, the group has been in emergency fundraising talks in recent weeks.

The Financial Times reported that the company could slide into insolvency as soon as Monday.

It is understood that Britishvolt has lined up advisers from EY to oversee the potential administration process.

The Government backed the plans for the gigafactory in January and said it would support Britishvolt with undisclosed funding, understood to be around £100 million. However, the firm has not yet received this funding.

Britishvolt has also received tens of millions of pounds of financial backing from FTSE 100 metals firm Glencore, which saw its shares dip on Monday morning.

The company has faced uncertainty in recent months, with co-founder Orral Nadjari leaving the firm in July.

Over recent months, the company has held urgent talks to access more funding to pump into its development until it can start production and deliver its own revenues.

A spokesman for Britishvolt said: “We are aware of market speculation.

“We are actively working on several potential scenarios that offer the required stability.

“We have no further comment at this time.”

Shadow business secretary Jonathan Reynolds said: “This disastrous news is a further reminder that the economic crisis made in Downing Street is costing jobs and investment.

“It is a sight that has become all too familiar – businesses going under, jobs being lost and investment in the industries of the future going abroad rather than the UK.

“The blame here lies with a Conservative Government that has run Britain’s economy down over 12 years, failed to back growing industries as other countries have, and has completely failed to grow our economy.”