Britishvolt, a struggling electric vehicle battery company, secures short-term funding

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License picture” alt=”On the brink of bankruptcy just this week, electric vehicle battery company Britishvolt said it had secured enough funding from metals giant Glencore to keep moving forward. Photo by John Angelillo/UPI | License picture“/>

On the verge of bankruptcy only this week, electric vehicle battery company Britishvolt said it had secured enough funding from metals giant Glencore to keep moving forward. Photo by John Angelillo/UPI | License picture

November 2 (UPI) — Struggling British electric vehicle battery company Britishvolt announced on Wednesday it had secured enough funds to save it from going under.

Employees at a company that was once a focal point of the UK government’s electric vehicle plans have also taken a pay cut to help the company’s finances.

Britishvolt was founded three years ago and proposed a huge battery factory for the North East of England, winning favor with the government of former centre-right UK Prime Minister Boris Johnson and his Tory colleagues .

The company halted work on its planned plant in August in a bid to conserve cash. Britishvolt had been successful in attracting capital from investors but was struggling to secure enough funding to move forward in earnest. Opposition Labor leaders said earlier this week they expected the company to go bankrupt.

The company said in a statement carried by CNBC that it had recently succeeded in obtaining financial support with the help of investors.

“The result is that we have now secured the necessary near-term investment that we believe will allow us to bridge over the coming weeks to a more secure funding position going forward,” the statement said. “To further reduce our short-term costs, our team of dedicated employees has also voluntarily accepted a temporary salary reduction for the month of November.”

Most major economies are struggling to build up their supply chain of the batteries needed to support increased sales of electric vehicles. The factory envisaged by Britishvolt would have the capacity to produce more than 300,000 EV batteries per year. Construction of the facility was due to begin in late 2023, backed by a memorandum of understanding with Aston Martin.

Some of the recent financial backing for Britishvolt, meanwhile, has come from metals supermajor Glencore, London’s Evening Standard reported.

A mandate in Britain calls for an end to the sale of new diesel and petrol-powered vehicles by 2030.

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