Britishvolt Layoff 300 Employees Due to Bankruptcy
The UK company Britishvolt, which was the creator of the gigafactory for electric vehicle batteries, filed for bankruptcy on Tuesday.
The start-up was working on the multibillion-dollar project in Blyth, northeast England, and was supported by former British prime minister Boris Johnson in his efforts to promote a greener economy.
However, it entered administration on Tuesday, a procedure where a struggling company hires outside assistance to attempt and save some of the operations.
When a formal application for the process was submitted, the financial firm EY announced that it would supervise the group’s administration.
In a statement, EY stated that “the firm has entered into administration.”
It said that the “bulk” of its 300 employees had been let go “with immediate effect.”
Despite the government’s offer of financial assistance and in the aftermath of investment from the global commodities company Glencore and the British luxury car manufacturer Aston Martin, Britishvolt has been in urgent fundraising discussions since the end of last year.
It had intended to obtain a rescue agreement in which a group of investors would have bought the majority interest.
At Blyth, Britishvolt intended to make 300,000 electric vehicle batteries annually.
Additionally, it sought to employ 3,000 people on the site, with the possibility of thousands more supply chain jobs being supported by the project.
