Council Eyes £15m to Repurchase Gigafactory Site.
Northumberland Council is taking precautionary measures by setting aside £15 million in public funds if it needs to repurchase land initially designated for a battery factory. The plans for the gigafactory in Cambois, near Blyth, Northumberland, were thwarted after Britishvolt, the original purchaser of the land for £4.8 million, collapsed. The council’s move involves allocating funds under a “strategic acquisition fund” to ensure readiness for any potential repurchase of the land.
The gigafactory, initially expected to be developed by Britishvolt, was anticipated to generate approximately 8,000 jobs. Unfortunately, after Britishvolt went into administration in January 2023, with over 200 job losses, the land remained undeveloped. Last year, Recharge Industries from Australia acquired the assets of Britishvolt, including an agreement to take over the site for around £8.57 million. However, the completion of the transaction has not yet occurred, as per the administrator’s EY.
In a recent full 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. The fund is viewed as a proactive step to ensure the council is well-prepared for any future negotiations or opportunities regarding the site.
Scott Dickinson, the opposition Labour leader on the council, expressed concerns about the potential repurchase cost exceeding the original sale price, calling it “embarrassing” for the council. However, he acknowledged that the funding would enhance the council’s negotiation capability regarding 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 designated for any specific project but rather positioned as a contingency to be used should an opportunity arise 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 allow more time for Recharge to relaunch the project or explore alternative options. The move by Northumberland Council reflects a proactive approach to potential future developments, demonstrating their commitment to securing the best outcome for the community.
