Britain’s solely battery cell maker will collapse inside days with out additional cash

AMTE Energy, Britain’s solely homegrown battery cell maker, has warned it should collapse inside days except it receives a contemporary injection of money.

Shareholders look set to stroll away with nothing ought to AMTE collapse, with the group warning  ‘the prospects for restoration of worth’ by fairness buyers ‘could be distant.’.

AMTE shares slumped over 50 per cent early on Thursday and have been down 45.52 per cent or 3.76p to 4.50p in late morning buying and selling. The group’s shares have fallen over 90 per cent within the final yr.

The group specialises in lithium-ion and sodium-ion cells utilized in excessive efficiency electrical automobile batteries and long-duration power storage.

In hassle: AMTE says it is monetary scenario was ‘essential’, including that it is getting ready to collapse

In a dismal replace, AMTE advised buyers: ‘The corporate continues to be in discussions with present and potential buyers regarding elevating additional finance. 

‘Nevertheless, given the additional passage of time since the newest announcement on 29 June 2023, the Firm’s monetary scenario is changing into ever extra essential.’

It mentioned it wanted to discover a resolution ‘throughout the subsequent few enterprise days’.

Whereas discussions are ongoing, their consequence is in no way a foregone conclusion.

AMTE mentioned: ‘Within the occasion that the Firm is put into administration, buying and selling of its shares on AIM could be suspended with fast impact.’

In a dire warning to shareholders, the corporate added: ‘Accordingly, ought to the Firm be unable to safe extra funding, the prospects for restoration of worth, if any, by shareholders could be distant.’

In March 2021, the corporate, which was based in 2013, was admitted to buying and selling on the AIM market of the London Inventory Alternate. 

The group is concentrated on launching a collection of ‘subsequent era battery cells’ based mostly on new chemistries and cell buildings designed to resolve numerous issues in energy supply, power efficiency and security.

Its manufacturing facility in Thurso, Scotland has, it claims, the second largest cell manufacturing capability within the UK, with the group additionally sustaining a product improvement staff in Oxford. 

AMTE’s proposed gigafactory in Dundee, Scotland is predicted to be able to producing over 8 million battery cells a yr, ‘enabling the Firm to quickly scale up cell manufacturing’, in keeping with the group. 

The agency warned final month that it had a matter of weeks to safe sufficient money to remain afloat. 

The corporate beforehand mentioned it was contemplating shifting manufacturing from the UK to the US to learn from subsidies within the Inflation Discount Act. 

On Wednesday, Jaguar Land Rover-owner Tata confirmed plans to build its flagship electric car battery factory in the UK.

The brand new plant in Somerset is predicted to create 4,000 jobs and 1000’s extra within the wider provide chain.

Tata mentioned it might make investments £4billion within the web site, however it’s understood that the federal government can also be offering subsidies value lots of of hundreds of thousands of kilos.