Britishvolt staff take pay cut to save battery startup from collapse
Staff at Britishvolt have agreed to a temporary pay cut in a bid to prevent the battery startup from going bust.
It comes as Britishvolt confirmed reports that it has secured “near-term” funding to ensure its survival over the “coming weeks”.
The West Midlands-based battery manufacturer said it is in talks with other potential investors to bring in cash to secure its longer-term future.
Britishvolt added that it has received “promising approaches from several more international investors in the past few days” but declined to provide any further details.
A Britishvolt spokesperson told UKTN that there has been “overwhelming support” from the company’s near-300 staff for the voluntary November pay cut.
Britishvolt’s executive team will work unpaid this month and directors will receive 25% of pay, according to the Guardian. The majority of the remaining staff will take a 50% pay cut.
The firm’s survival was left in the balance after the government rejected Britishvolt’s request for an advance of £30m in committed funds.
The fresh funding and staff pay cuts give a lifeline to Britishvolt’s £3.8bn battery “gigafactory” in Blyth in Northumberland, which is predicted to create 3,000 jobs and was seen as a flagship
Britishvolt has yet to bring in revenue and has raised more than $2bn in a combination of debt financing, venture funding and public grants. Britishvolt has struck partnerships with Aston Martin and Lotus to develop batteries to be used in the automakers’ electric vehicles, but these are non-binding.
The company has been plagued with challenges this year, with its battery production hit with delays and the company founder, Orral Nadjari, stepping down as CEO.