When Britishvolt went bust in early 2023, many people were shocked. Here was a company that promised to bring thousands of jobs, help the UK lead the way in electric vehicles, and breathe new life into a proud industrial town. Instead, it ran out of money, construction stopped, and around 200 people lost their jobs almost overnight.
But this wasn’t just a story about one company getting it wrong. Britishvolt’s collapse says something bigger about where the UK is headed, and what we need to get right if we want to stay in the game, especially in industries like electric cars and green tech.
The big idea that didn’t work out
Britishvolt launched in 2019 with a bold plan to build a massive battery ‘gigafactory’ in Blyth, Northumberland. It would power the next generation of electric vehicles, create over 3,000 jobs, and turn a former coal port into a modern hub of clean energy innovation.
There was genuine excitement. The government said it would put in up to £100 million if the company hit certain construction milestones. Big investors like Glencore backed it. And for Blyth, a place that’s seen more than its share of industrial decline, it felt like a rare bit of good news.
But things started to unravel. By early 2023, Britishvolt had burned through its money. There was no real progress on the factory, no confirmed customers for the batteries, and confidence among investors had dried up. The company folded, leaving many questions and a giant empty plot of land.
Why this matters more than you might think
Losing a start-up is one thing. But Britishvolt’s failure wasn’t just a blow to Blyth; it raised serious questions about how ready the UK is for the future of car manufacturing.
Right now, we only have one operating battery plant, and it’s Chinese-owned. Meanwhile, countries across Europe are building dozens of them. If we don’t catch up, carmakers might simply decide to leave the UK altogether. And, with the deadline looming to stop selling petrol and diesel cars by 2030, we don’t have much time to turn things around.
It’s not just about jobs or factories either. After Brexit, the rules for trading cars with the EU got stricter. If too many parts come from outside the UK or Europe, like the battery, cars exported to Europe get hit with tariffs. So if we don’t make batteries here, British-built cars suddenly become more expensive to sell abroad.
So what went wrong?
In short, Britishvolt was trying to run before it could walk. They didn’t have confirmed buyers, and no major carmaker had agreed to buy their batteries. Without those deals, raising money is hard, especially in a market where investors are already nervous.
Work on the site fell behind schedule, which meant they couldn’t unlock the government’s promised funding and started missing key targets. On top of this, costs were rising fast. The war in Ukraine pushed up prices for energy and materials. Labour costs were climbing, too. All of that made it harder to stick to budgets and timelines.
With no clear revenue in sight and big bills piling up, investors started backing away, and the whole thing collapsed.
What happens to the site now?
There’s still some hope for Blyth. The location is ideal as it has a deepwater port, strong electricity connections (including from renewables), good transport links, and a ready supply of skilled workers. That’s why other companies are still interested in picking up the project.
If the right partner steps in, ideally a big-name carmaker or a serious manufacturing group, the dream of a battery factory in Blyth could still come true. It just might not be Britishvolt that builds it.
Where do we go from here?
Britishvolt’s story shows us where the UK got it wrong and what we can do better.
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Don’t go it alone
Most successful battery factories in Europe are joint ventures between governments and big car companies. Britishvolt didn’t have that kind of backing. We need everyone pulling in the same direction to build something this big and this important.
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Give investors certainty
A single government grant isn’t enough. Investors want to know that there’s a long-term strategy, political stability and a clear plan to support green manufacturing.
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Think big and long-term
This isn’t just about one site or one factory. It’s about making sure the UK has the skills, supply chains and infrastructure to lead in electric vehicle production. That means training workers, investing in energy networks, and supporting research and development.
It’s not all doom and gloom
Yes, Britishvolt failed. But that doesn’t mean the whole idea was wrong. In fact, it might help us get smarter about how we build the next phase of UK industry. Sometimes failure is the thing that finally makes people pay attention.
The UK still has a lot going for it – brilliant engineers, a proud manufacturing history, top universities, and growing interest in clean tech. We’ve already seen significant investments elsewhere, like Ford pumping £125 million into its Halewood plant for EV production.
The trick now is to keep that momentum going and ensure projects like Britishvolt’s don’t fall through the cracks again.
A final thought
There’s no sugar-coating it; Britishvolt’s collapse was a blow. For the workers, the local economy, and the UK’s hopes of leading in green tech. But there’s still a chance to turn things around. The site is there. The need for batteries is only going to grow. And with the right mix of public support, private investment, and big-picture thinking, Blyth can still play a key role in the UK’s industrial future. We just have to act fast, because while we’ve been watching projects fail, other countries have been building.
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