- By Simon Jack
- business editor
1 hour ago
Image Credit: Britishvolt/PA Media
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An artist’s rendering of Britishvolt’s proposed factory
Australian company Recharge Industries has bought defunct battery maker Britishvolt out of administration.
Its demise has been attributed to a lack of battery experience, proven technology, customers and revenue.
Recharge Industries has a similar profile in many ways, it’s a startup with little manufacturing experience.
It is an Australian company but is ultimately owned and operated by a New York-based investment fund called Scale Facilitation.
“What we are bringing is validated technology,” the fund’s Australian managing director, David Collard, told the BBC.
“The US defense industry has validated it and it is already being supplied to the British Navy via a subcontractor.”
Big ambitions
The new owners will keep the Britishvolt brand name but have very different plans for the future.
The company intends to initially focus on batteries for energy storage and hopes to have these products available by the end of 2025.
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David Collard, Managing Director of Scale Facilitation
Batteries for high-performance sports cars are then to be produced.
The prospect of a much-needed facility capable of producing batteries for high-volume carmakers in the UK is many years from now.
But does Mr Collard understand why many in government and in the car industry are nervous that without the involvement of big manufacturers like Ford, GM, JLR and BMW they will not deliver what British industry needs?
“They all started somewhere before they grew up. We have accelerated growth and have been successful all along the way,” he said.
Recharge Industries certainly has big ambitions. There are plans to build a similar plant in Mr. Collard’s hometown of Geelong, near Melbourne. He has spent time cultivating relations with government and opposition leaders there.
He acknowledged he had not yet formed the same level of connections in the UK but had worked with the owners of the Northumberland site.
“I’ve spent a lot of time with Northumberland County Council. They really want a gigafactory and what’s best for their people,” he said.
Mr Collard honestly admitted that he might not be the right person for it.
“I’m not saying I’m the best person in the world to lead this project, but ultimately the stewards had a legal obligation to get the best return for creditors – but I think they care as individuals about what the.” future brings.”
The deal comes just days after Leveling Up secretary Michael Gove spoke to the Northern Echo during a visit to Blyth and announced £20.7million funding for the seaside town.
“The Government is willing to stand behind the right company with the right investment because we believe that a Gigafactory here in Blyth would be an appropriate way to build on the skills of the local people and indeed on the advantage this town has already shown when it comes to renewable energy and the future of energy,” said Mr. Collard.
The collapse of Britishvolt, with the loss of more than 200 jobs, was seen as a blow to the government’s “leveling” agenda initiated by ex-Prime Minister Boris Johnson.
The government had offered Britishvolt’s former owners £100m if they hit certain construction milestones.
Mr Collard said he would happily accept government funding but would like broad political support. “Everyone will take free money but at the end of the day we want bipartisan support and we have that in Australia and the US.”
He described the site as “shovel ready,” but said it would take six to 12 months for the first shovel to be deployed on site.
In the end, he hopes that the location will create up to 8,000 jobs on site and in the supply chain.
That would be a great result for the region and the UK economy, but this project does not yet appear to be the answer to the UK’s urgent need for car batteries.
There is currently only one Chinese-owned battery factory in the UK, located next to the Nissan factory in Sunderland.
In the European Union, 35 plants are planned or already under construction.