London Daily

Focus on the big picture.
Friday, Sep 11, 2026

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
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
UK Airports Face Continuing Disruption After National Air Traffic Control Failure
UK Bans Imports From Israeli Settlements and Expands Sanctions on Iran
British Chambers of Commerce Forecasts UK Growth of 1% as Investment Remains Weak
UK Suspends Local Government Reorganisation Decisions and Cancels Planned Shadow Authority Polls
UK Parliament Opens Inquiry Into Gaps in Climate Change Preparedness
Andy Burnham and Xi Jinping Hold Talks on Trade, Security and British Consular Cases
UK Joins France, Canada and Other Nations in Measures Against Israeli West Bank Settlements
UK Announces New Sanctions Targeting Iranian Nuclear and Military Networks
British Chambers of Commerce Calls for Business Rate Reform and Productivity Support
UK Farmers Warn Dry Summer Could Reduce Crop Yields and Push Up Food Prices
UK Rail Networks Hit by Widespread Delays After Major Signalling Failures
Matt Clifford Resigns as ARIA Chair After Conflict-of-Interest Scrutiny
UK and France Say Joint Border Operations Have Prevented More Than 48,000 Irregular Channel Crossings
UK Core Inflation Remains Above Expectations as Utility and Commodity Costs Stay Elevated
Jaguar Land Rover Considers Up to 4,000 UK Job Cuts Amid Automotive Industry Pressure
×