Britishvolt, the UK electric car battery maker, is in talks to sell a majority stake in the company as it races to secure a rescue deal.
The startup said it was “in discussions with a consortium of investors concerning the potential of a majority sale of the company”.
Britishvolt, which narrowly avoided administration last year after securing last ditch funding from investors, is planning to build a £3.8bn gigafactory in Northumberland.
The plant was championed by former prime minister Boris Johnson. The Government has earmarked £100m of funding for the project, although that investment has yet to be released.
In November, Britishvolt sought to draw down up to £30m in funding from the taxpayer early, but was refused. It secured last minute funding from private investors to continue trading, while executives and staff agreed to pay cuts.
Two years ago, Britishvolt had talked up its prospects of an initial public offering, but has struggled to hit its targets. Its site is facing a multiyear delay and the company was rocked last year by the departure of its founder and chief executive.
Britishvolt said discussions with investors aimed to secure the “long-term sustainability and funding necessary to enable it to pursue its current plans to build a strong and viable battery cell R&D and manufacturing business in the UK”.
The company did not disclose the identity of the potential investors.
Investors have also been scoping out the company’s Blyth site. Rival battery makers, including Slovakia’s Inobat, which is led by former Aston Martin boss Andy Palmer, are understood to be interested in the location should Britishvolt collapse.
Real estate funding for the site is due to be provided by fund manager Abrdn, although it has not invested in Britishvolt itself. The financing is contingent on milestones being met by Britishvolt.
