Blyth Gigafactory collapse leads to Parliamentary inquiry

The Business, Energy and Industrial Strategy Committee said the inquiry will probe the supply of batteries for electric vehicle manufacturing in the UK and the viability of production in the UK.

It came hours after electric car battery firm Britishvolt tumbled into administration and made the majority of its roughly 300 staff redundant.

Read more: Jobs dream shattered as £3.8bn Britishvolt project set to end in collapse

The company, which had plans to build a gigafactory to make the batteries in Northumberland, hired administrators at EY after failing to raise enough cash for its research and the development of its Cambois site.

Administrators said they are considering options which could include the sale of certain assets and intellectual property.

The collapse follows months of trouble as the company struggled to raise enough money to stay afloat.

Recent turbulence in the UK electric vehicle sector also saw BMW announce in October that it would be halting production of the electric Mini at its Oxford site.

Darren Jones, chair of the committee, said: “The future of car manufacturing in the UK is dependent on our ability to make electric vehicles, and to be able to export them into the EU.

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“That means we need local supplies of electric vehicle batteries – something we’re falling significantly behind on compared to other parts of the world.

“This inquiry will look at what’s holding back the development of electric car batteries in the UK and what needs to be done to protect the thousands of jobs across the country in this important sector.”