Reaction as Recharge Industries takes over British Volt plans

Australian firm Recharge Industries bought the failed British Volt project in a deal reportedly worth £30m, according to the Financial Times.

The deal had already been announced earlier this month, but was delayed for two weeks as Recharge reportedly tried to raise the funds needed to push ahead.

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But there were fears a change in plans for the site could leave Britain’s future as a leader in the production of batteries for electric vehicles (EVs) in the balance.

Speaking in a BBC interview Recharge’s chief executive David Collard said the business would initially focus on batteries for energy storage, then intends to produce batteries for high-performance sports cars.

British Volt was expected to make more than 300,000 batteries a year when production reached its peak at a factory in Cambois, near Blyth, Northumberland.

Outside the British Volt site in Cambois last month. (Image: Daniel Hordon)

Reacting to the news founder and CEO of EV website electrifying.com Ginny Buckley said: “While the acquisition of British Volt by Australian start-up Recharge Industries is good news for the green energy transition thanks to its plan to produce, it would appear to do very little to help secure the future of the UK’s car industry.

“Recharge Industries' plan only mentions the production of batteries for high-performance vehicles and there is no mention of supplying mass-market affordable electric vehicles. Because of this, the UK risks losing its competitive edge on the global stage as production electrifies.

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“This is bad news for a car industry that’s already faltering; with Nissan now the only mainstream company manufacturing electric cars here in the UK, we're at serious risk of simpy becoming an assembly line, putting together pieces of a jigsaw puzzle rather than pioneering the way when it comes to battery production.”

Speaking to The Northern Echo just last week Levelling Up Secretary Michael Gove said the Government was “working hard in order to ensure that we can have the electric vehicles of the future powered by British batteries and that means investment in Blyth with the right partner”.

He added: “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.”

British Volt collapsed last month, laying off most of its 300 staff.

John McCabe, Chief Executive, North East England Chamber of Commerce, said: “We warmly welcome the news Recharge Industries has completed the acquisition of British Volt and can hopefully now accelerate plans to develop a battery factory with a thriving regional supply chain.

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“This transformative project has the potential to place the North East, and the UK, at the front of battery manufacturing.

“With its excellent port, road and rail links, and the availability of renewable energy sources, there is no better site on which to build such a huge facility.

“The North East has an incredibly-skilled workforce and local partners, including the Chamber, will be eager to provide support for the project. These are exciting times for our region and we look forward to Recharge Industries playing its part in our economic renewal.”

A Government spokesperson said: “We are pleased that Britishvolt has successfully been acquired. We know investment supports high quality jobs in industries of the future and we are determined to ensure the UK remains one of the best locations in the world for automotive manufacturing, especially as we transition to electric vehicles.

“We look forward to learning more about Recharge Industries’ plans and will continue to work closely with the Local Authority to ensure the best outcome for the site.”