London Daily

Focus on the big picture.
Saturday, Nov 22, 2025

Britain's battery industry doomed by government, Britishvolt co-founder claims

Britain's battery industry doomed by government, Britishvolt co-founder claims

Britishvolt co-founder Orral Nadjari, speaking to Sky News in his first interview since the firm's collapse, claims government bureaucracy and delays were to blame for the company's failure.

Britain has now missed its window of opportunity to build a battery industry, and the government, including Rishi Sunak, is largely to blame, the head of collapsed cell manufacturer Britishvolt has told Sky News.

The company was feted as the jewel in Britain's manufacturing crown - the first home-grown gigafactory, co-financed by the government and turning out electric car batteries from its plant in the North East - but went into administration earlier this year.

Now, in his first interview since its implosion, co-founder Orral Nadjari blamed government bureaucracy for its failure.

"We lost that window of opportunity," said Mr Nadjari. "We already are behind East Asia. We're already behind continental Europe. The UK, unfortunately, has lost out or is losing out on the gigafactory economy, which is massive in terms of job creation.

"Unfortunately we didn't see that same support from the Conservative government in order to level up the North East. Because the North East wasn't as important for them as maybe other places in this country."

It comes as Vauxhall's parent company Stellantis called on the government to renegotiate its Brexit deal with the EU, telling a parliamentary committee's inquiry on electric vehicle production it was no longer able to meet trade rules on where parts are sourced.

Early investors 'to be hit hardest'

Stellantis' warning was echoed by Ford, who said in a statement tariffs will penalise companies that invested early in electric vehicles the hardest.

The industry, Ford said, "does not have sufficient supply of locally-sourced batteries and components to meet demand".

"Tightening the trade rules at this point risks undermining the switch to EVs with tariffs and adding pointless cost to customers wanting to go green.

"Manufacturers who have invested heavily early in the transition will be hardest hit by tariffs because combustion engine vehicles will continue to move tariff-free."

'Fatal delay'

Britishvolt had planned to build a large scale battery factory - a so-called gigafactory - at a site on the North East coast near Blyth.

The plans were hailed by the then Prime Minister Boris Johnson as "part of our Green Industrial Revolution" and the site was visited by then Business Secretary Kwasi Kwarteng.

But while the government agreed in principle to provide funds to help the company build the factory, Mr Nadari told Sky News the Treasury repeatedly dragged its heels.

He said even after all the necessary paperwork had been done, the relevant papers sat on the then Chancellor Rishi Sunak's desk for months before being formally approved.

That delay was fatal, Mr Nadjari alleged, because it meant that Britishvolt ended up trying to raise most of its money at a period of war and sky-high inflation, when global investment was cratering.

"Nobody could foresee a two digit inflation, that the country hasn't seen since 1955," he said, adding that Britishvolt was "caught between a rock and a hard place" as Mr Sunak and Boris Johnson battled during the former prime minister's last days in office.

"Nobody could foresee three different prime ministers, four different chancellors… The UK saw a very turbulent time… and for a startup, what is important is that continuous capital injection and that really halted off and unfortunately because of that rivalry, we were hit with a delay."
Orral Nadjari founded the company


Claims 'completely untrue'


The government disputes the timeline provided by Mr Nadjari, arguing that the final decision was awaiting approval for barely more than two months - as opposed to more than four - though it conceded it did insist on extensive due diligence before agreeing to provide public money.

A spokesperson said: "These claims are completely untrue. Taxpayer money must always be used responsibly which is why full due diligence was undertaken before a final grant offer was made.

"The grant offer, which was welcomed and accepted by the company, included an agreement that funds could only be drawn when agreed milestones are met, such as those on securing private investment. Unfortunately, these conditions were not met, and despite significant engagement from government, a solution was not found.

"The government remains committed to Levelling Up across the UK and is actively engaging with companies to secure investments that will ensure the UK remains a world leader in automotive manufacturing".

'No misappropriation of funds'


Following the collapse of Brtishvolt, allegations surfaced about whether its bosses, including Mr Nadjari, had been running the company responsibly.

In particular, there were stories about use of private jets, about a mansion near the company's Blyth site which it rented for the use of executives and about large sums spent on computers and yoga lessons.

Mr Nadjari said: "Having a wellness instructor as a preventative measure for people's health is economical. To be able to do that virtually for 300 people at a low cost of roughly £2,000 to £3,000 a month - that is very economical.

"There was no misappropriation of funds because not a single penny was spent on a private jet. £100,000 went to, as you say, a 'mansion'… but it was a large house. And if you look at the cost of renting a hotel room for that many people during that period of time, it was far more economical to rent a house.

"The fact that it happened to have a pool, that wasn't working for 18 months by the way, has nothing to do with it."

Newsletter

Related Articles

0:00
0:00
Close
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
×