Electric car battery startup Britishvolt is believed to have secured emergency funding after being on the brink of collapse on Monday.

The Blyth gigafactory would produce enough batteries for over 300,000 electric vehicles each year

The business, which is planning to launch a gigafactory in Northumberland, was said to have been preparing to appoint administrators after the Government had rejected a £30m advance on previously agreed funding.

But a report by the BBC claims the firm has averted collapse by securing additional funding for the business that will keep it going for the short to medium term.

A spokesperson for Britishvolt said: “We are aware of market speculation. We are actively working on several potential scenarios that offer the required stability. We have no further comment at this time.”

Its planned £3.8bn gigafactory would support government plans to make the UK automotive industry a leader in electric vehicles and comes after a report published by the SMMT last year called for a binding target on battery capacity to support British automakers.

The facility, planned for Blyth, would also create 3,000 direct jobs and another 5,000 indirect jobs in the wider supply chain.

Once complete, the factory would produce enough batteries for over 300,000 electric vehicles each year; equivalent to around 25% of current UK vehicle manufacturing and supporting the 2o30 ICE ban.

In January, Britishvolt secured £1.7bn funding from UK asset investment giant Abrdn and fund manager Tritax on the back of a government pledge of £100m for the project, with the latter supporting the UK’s 10-point plan for a “green industrial revolution”.

However, it’s since delayed plans for the start of production at Blyth due to “difficult external economic headwinds including rampant inflation and rising interest rates”.