Recharge Industries is set to acquire the assets of bankrupt battery start-up Britishvolt, with EY, the insolvency administrator, anticipating the completion of the transaction within the next seven days. The Australian company was selected as the buyer with the best offer among multiple bidders, according to a publication by EY, as reported by several media outlets.
The recently finalized deal follows Britishvolt’s announcement of bankruptcy just three weeks prior. The company had planned to establish a battery cell factory in Blyth, Northumberland, England.
See also: Britishvolt Files for Insolvency, Lays Off Most Employees Amid Failed Investment Talks
Recharge Industries, an Australian battery start-up owned by the US investment group Scale Facilitation, plans to build its own battery cell factory in Australia with a capacity of up to 30 GWh per year. The company aims to acquire Britishvolt’s assets, including the factory site that Britishvolt has already secured.
“We’re thrilled to be progressing with our proposed bid for Britishvolt and can’t wait to get started making a reality of our plans to build the UK’s first gigafactory “, Recharge founder David Collard is quoted saying in the EY statement. The statement suggests that Recharge plans to implement Britishvolt’s planned cell factory at Blyth in the northern English county of Northumberland once the acquisition is completed. Planning permission has already been granted for the site there.
The Financial Times reported that two bidders, private equity firm Greybull Capital and Saudi-based British Bank, have made an offer for the insolvent start-up, Recharge Industries. Although details are scarce, Recharge admitted to paying a premium over other bidders due to their confidence in a project that combines Australian minerals, American battery technology, and a promising UK location.
See also: UK Battery Startup Britishvolt in Talks to Sell Majority Stake to Consortium of Investors
The potential establishment of a gigafactory by Recharge Industries could serve as a much-needed boost for the UK industry. Currently, only a few companies are looking to establish battery manufacturing in Britain, including Britishvolt and Recharge Industries, and China’s Envision AESC. The latter will build a large battery factory near the Nissan plant in Sunderland to supply cells to Nissan and other automakers such as Jaguar Land Rover. The Indian Tata Group, which owns Jaguar Land Rover, has announced plans to consider building a European battery factory, which would align with the company’s presence in England.
