Britishvolt is reportedly in talks over a potential sale of its main factory site, putting at risk one of the UK’s biggest electric vehicle (EV) battery cell factory developments.

Reports suggest that Britishvolt is in talks to divest its 93-hectare (230-acre) facility in Cambois, northern England, with Slovak battery manufacturer Inobat a potential suitor. Inobat has been evaluating European locations in the UK and Spain and may consider a merger or acquisition of Britishvolt as a potential route to secure new battery production capacity in Europe.

Glencore-backed Britishvolt has secured outline agreements with Aston Martin and Lotus Cars, but has not managed to land firm commitments with major automakers. Back in August, the company postponed planned start of production from late-2023 out to mid-2025 blaming increased interest rates, inflation and surging energy costs. This also coincided with the departure of the company’s founder Orral Nadjari.

Despite securing funding from the UK government to help build out of the Cambois plant, it appears Britishvolt is now facing a very precarious future, with economic headwinds strengthening to limit future potential investment. Even in a growing European EV battery market, the build out of new capacity is a zero-sum game resulting in winners and losers, with the odds on UK’s bet looking increasingly stretched. Government intervention is possible, but unlikely to be deep enough to transform current fortunes, particularly at a time when UK Government borrowing and investment is under significant scrutiny.