An Australian start-up has been selected as the preferred business to buy Blyth's Britishvolt out of administration.

The Northumberland electric car battery manufacturer collapsed into administration last month after failing to raise enough catch for its research and the development of its Cambois site. 

The administrators EY have selected Recharge Industries as the preferred buyer after they beat three other offers submitted earlier this week, the Financial Times has reported. 

On Friday, EY informed the company of its status and vowed to continue work on the bid over the weekend, aiming to sign a contract on Monday. 

Read more: Australian start-up launches late rescue move for collapsed Britishvolt

One person involved in the process told the FT: "A clear bidder has emerged, subject to them showing to all parties they have proof of finance."

Two weeks ago, Britishvolt's collapse dashed hopes of creating a homegrown startup in the North East. 

But if this deal closes, the Australian group could save the Blyth electric battery plant, bringing back the 300 jobs in the region lost when the planned gigafactory folded. 

Under Recharge, Britishvolt's prototype battery has the potential to be commercialised after being sold to another new buyer. 

Since the company went into administration, nearly 50 potential buyers have shown their interest. Four companies submitted bids on Wednesday, including bids from Britishvoltninvestors, and from the private equity group Greybull Capital. The other bid, reportedly, was from the Saudi British Bank.

Read more: EY administrators called in to Britishvolt as funding runs out

Recharge, which is backed by New York investment firm Scale Facilitation, is also moving forward with plans to build a similar battery factory in Geelong, near Melbourne.

David Collard, Scale Facilitation’s Geelong-born founder and chief executive, said a takeover of the British business would make strategic sense.

He said: “Strengthening our friends in the UK, especially when most others are kicking them when they’re down, is in our interest and definitely in the spirit of (Australia-UK-US security pact) Aukus.”

David Collard, Scale Facilitation’s Geelong-born founder and chief executive, said a takeover of the British business would make strategic sense.

He said: “Strengthening our friends in the UK, especially when most others are kicking them when they’re down, is in our interest and definitely in the spirit of (Australia-UK-US security pact) Aukus.”

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