Britishvolt, a defunct battery manufacturer, has been purchased out of administration by the Australian company Recharge Industries. .
In Northumberland, Britishvolt had intended to construct a £4 billion battery plant but gave up last month due to financial difficulties. .
Its failure was attributed to a lack of battery expertise, tried-and-true technology, clients, and profits. .
Scale Facilitation, a New York-based investment fund, owns and operates Recharge Industries.
According to the chief executive of the fund, David Collard, who is Australian, "what we are bringing is validated technology.".
It has been approved by the US defense sector, and a subcontractor has already started supplying it to the UK navy. ".
Although the new owners have very different future plans, they will retain the Britishvolt brand name. .
By the end of 2025, the company hopes to have these products on the market. The company plans to start by concentrating on batteries for energy storage.
After that, it wants to make batteries for fast sports cars. .
A much-needed facility in the UK that can manufacture batteries for high-volume automakers appears to be many years away. .
But does Mr. Collard comprehend why many in the government and the auto industry are concerned that it won't meet the needs of the UK industry without the participation of significant manufacturers like Ford, GM, JLR, and BMW?
"Before they became well-known, they all had humble beginnings. We've experienced accelerated growth and have achieved success every step of the way," he claimed.
Undoubtedly, Recharge Industries has lofty goals. It intends to construct a similar plant in Geelong, which is close to Melbourne and the hometown of Mr. Collard. He has invested time building relationships with the opposition and the government there.
He acknowledged that although he had interacted with the owners of the Northumberland site, he hadn't yet developed the same level of connections in the UK. .
"I was with Northumberland County Council a lot. He claimed that they genuinely wanted a gigafactory and what was best for their people.
In all honesty, Mr. Collard acknowledged that he might not be the best candidate to deliver that. .
"I'm not saying I'm the best person in the world to run this project, but at the end of the day, the administrators had a legal obligation to get the best return for creditors. However, I do believe they are concerned about what the future holds on an individual level. ".
The agreement was reached the day after Levelling-Up Secretary Michael Gove announced £20.07 million in funding for the coastal town in an interview with the Northern Echo while visiting Blyth. .
The government is prepared to support the right business with the right investment because, according to Mr. Collard, a gigafactory in Blyth would be a good way to capitalize on the area's strengths in terms of renewable energy and the future of energy.
The failure of Britishvolt, which resulted in the loss of more than 200 jobs, was seen as a setback for the government's "levelling up" agenda, which former Prime Minister Boris Johnson had championed. .
If the former Britishvolt owners met specific construction milestones, the government would have given them £100 million. .
Mr. Collard stated that while he would gladly accept government funding, he desired widespread political support. "Anyone will accept free money, but in the end, what we need is cross-party support, which both Australia and the US have. ".
Although he said the site was "shovel ready," he added that it would be six to twelve months before the first shovel was actually used on the project. .
In the end, he hopes the site will generate up to 8,000 jobs, both directly and indirectly through the supply chain.
Although that would be a fantastic result for the area and the UK economy, this project does not yet appear to be the solution to the UK's urgent need for car batteries. .
There is currently only one battery manufacturing facility in the UK, and it is located close to the Nissan factory in Sunderland.
In the European Union, 35 plants are either currently being built or are planned.
