Council Considers Utilizing £15 Million to Reacquire Gigafactory.
In a proactive move, Northumberland Council is allocating £15 million in public funds as a precautionary measure, ready to repurchase land initially designated for a gigafactory. The plans for the gigafactory, located in Cambois near Blyth, Northumberland, were disrupted following the collapse of Britishvolt, the original purchaser of the land for £4.8 million. The council is establishing a “strategic acquisition fund” to be prepared for any potential repurchase of the land.
The gigafactory, initially intended to be developed by Britishvolt, had the potential to generate around 8,000 jobs. Unfortunately, the project faced setbacks when Britishvolt went into administration in January 2023, resulting in over 200 job losses and leaving the land undeveloped. Last year, Recharge Industries from Australia acquired Britishvolt’s assets, including an agreement to take over the site for approximately £8.57 million. However, the completion of the transaction is pending, according to the administrator’s EY.
In a recent council meeting, a motion was passed to make £15 million available, providing the council with the financial means to take control of the land potentially. This fund is considered a proactive step to ensure the council is well-prepared for future negotiations or opportunities related to the site.
Scott Dickinson, the opposition Labour leader on the council, expressed concerns about the potential repurchase cost exceeding the original sale price, deeming it “embarrassing” for the council. However, he acknowledged that the funding would enhance the council’s negotiation capability concerning the former Britishvolt site. The land is currently subject to a “buy back clause,” the approved funding is intended to strengthen the council’s ability to negotiate with any future entities interested in the site.
Conservative leader Glen Sanderson emphasized that the allocated funds were not earmarked for a specific project but rather positioned as a contingency, ready to be used if an opportunity arises to purchase land or buildings for the benefit of the county council and residents.
EY, the administrators of Britishvolt, recently extended their role until January 2025 to provide more time for Recharge to relaunch the project or explore alternative options. Northumberland Council’s proactive approach reflects its commitment to securing the best outcome for the community in potential future developments.
