Failed battery manufacturer Britishvolt has secured a buyer during its administration process - providing hope that thousands of jobs that were promised may still yet be delivered. Australian company Recharge Industries has bought the ailing British brand.

Britishvolt collapsed last month after failing to receive £100m of cash from the UK Government that was contingent on the start-up company achieving certain development milestones.

Read more: 'We can't wait to get started', say new owners of Britishvolt site

The company's collapse was seen as a blow to the Conservative government's Levelling Up agenda, however Levelling Up Secretary Michael Gove told The Northern Echo in a visit to Blyth last week that “The government is ready to stand behind the right company with the right investment.

"Because we do believe that a gigafactory here in Blyth would be an appropriate way of building on the skills that local people have, and indeed the edge that this town has already displayed when it comes to renewables and the future of energy.”

The Northern Echo: Michael Gove in Blyth last week.Michael Gove in Blyth last week. (Image: PR)

The beleagured Britishvolt had planned to build a £3.8bn gigafactory near Blyth, Northumberland, but went into emergency funding talks in November last year after revealing how close they were to going under.

Its 300 existing employees agreed to take salary cuts at the time, but it proved too little, too late, with the company running out of funds in mid-January leading to job losses. It was hoped a buyer would be bought at the time, with Recharge Industries emerging as the front runner, however a deal has only recently been finalised.

David Collard, chief executive of Scale Facilitation - the investment firm which owns the majority of Recharge Industries - said that the company plans to go ahead with plans to build the gigafactory on the site at Cambois, just north of Blyth.

“I spent a lot of time with Northumberland County Council. They genuinely want a gigafactory and the best thing for their people,” he said.

Mr Collard hopes the renewed project can create up to 8,000 jobs on site and in the supply chain, with work expected to restart on the proposed factory site in the next six to twelve months.

Last month the shadow Business Secretary Jonathan Reynolds MP told The Northern Echo that Britishvolt's collapse wa a sign of the UK "falling behind" other countries when it comes to industrial strategy.

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"The collapse of Britishvolt was not inevitable," he said, "but it is a sign of the absence of any form of industrial strategy from this government.

"To maintain the number of jobs that we currently have in the automotive industry, the UK needs 8-10 gigafactories by the year 2040", he added. The UK currently only has one gigafactory, at the Nissan site in Sunderland. In the European Union, there are currently 35 plants planned or already under construction.

The Northern Powerhouse Partnership (NPP) was launched in September 2016 as the leading voice of business and civic leaders across the North of England. In response to the purchase of Britishvolt, NPP's chief executive Henri Murison said: “The site and circumstances at Blyth make it the ideal place to build a gigafactory. It is why I have remained optimistic that the business would be acquired, and the ambition of the project would be fulfilled.”

“This will put the North East right at the epicentre of the UK’s electric vehicle supply chain and Recharge Industries are the right business to make it happen. 

“International investors are lining up to invest in the North’s growing strengths in cutting edge, green industries such as this, with foreign direct investment up 72% in the last five years - despite dropping across the rest of the UK.