UK battery start-up Britishvolt is preparing to potentially fall into administration, risking almost 300 jobs.
The company has been developing a £3.8 billion gigafactory in Blyth, Northumberland, which it had hoped would employ up to 3,000 workers.
However, the group has been in emergency fundraising talks in recent weeks.
The UK government backed the plans for the gigafactory in January and said it would support Britishvolt with undisclosed funding, understood to be about £100 million. However, the firm has not yet received this funding.
The Financial Times has reported that the company could slide into insolvency soon.
It is understood that Britishvolt has lined up advisers from EY to oversee the potential administration process.
The company had received tens of millions of pounds of financial backing from FTSE 100 metals firm Glencore, which saw its shares dip on Monday morning.
The company has faced uncertainty in recent months, with co-founder Orral Nadjari leaving the firm in July.
Over recent months, the company has held urgent talks to access more funding to pump into its development until it can start production and deliver its own revenue.
“We are aware of market speculation,” a spokesman for Britishvolt said.
“We are actively working on several potential scenarios that offer the required stability.
“We have no further comment at this time.”
Shadow business secretary Jonathan Reynolds said: “This disastrous news is a further reminder that the economic crisis made in Downing Street is costing jobs and investment.
“It is a sight that has become all too familiar — businesses going under, jobs being lost and investment in the industries of the future going abroad rather than the UK.
“The blame here lies with a Conservative government that has run Britain’s economy down over 12 years, failed to back growing industries as other countries have and has completely failed to grow our economy.”
The firm had teamed up with Prologis in May to also create a £200m car battery plant in the West Midlands.
The facility is due to complement its Gigaplant at Blyth and enable it to produce more batteries.
The Blyth Gigaplant, which is due to be operational by the end of 2023, will eventually produce cells for more than 300,000 electric vehicles a year, Britishvolt said.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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The specs
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