Battery firm Britishvolt has collapsed into administration, with most of its 300 staff made redundant with immediate effect.
Emergency talks with investors regarding a rescue bid have fallen through with EY appointed as the administrators.
The company had planned to build a gigafactory in Blyth, Northumberland, that would produce enough batteries for over 300,000 electric vehicles each year. The project was set to create 3,000 direct highly-skilled jobs and another 5,000 indirect jobs in the wider supply chain.
The BBC reports that Dan Hurd, Joint Administrator and Partner at EY, said the firm had offered “a significant opportunity to create jobs and employment, as well as support the development of technology and infrastructure needed to help with the UK’s energy transition”.
Administrators will now explore options for a sale of the business and assets.
Back in November the company said it was “continuing to actively work on several potential scenarios” in order to provide the longer-term sustainability needed to enable the company to build a strong and viable British battery cell R&D and manufacturing business.
The company had secured short-term funding to allow it time to reach a more secure funding position for the future.
Staff agreed to take a temporary pay cut while the company sought longer-term funding for its planned gigafactory.
Last year Britishvolt announced that it had secured Government funding to help build the gigaplant, but when the company asked the government to advance £30m of a promised £100m in support, it was refused as the company had not hit agreed construction milestones to access the funds.