Britain’s only battery cell maker AMTE will collapse within days without more cash

AMTE Power, Britain’s only homegrown battery cell maker, has warned it will collapse within days unless it receives a fresh injection of cash.

Shareholders look set to walk away with nothing should AMTE collapse, with the group warning  ‘the prospects for recovery of value’ by equity investors ‘would be remote.’.

AMTE shares slumped over 50 per cent early on Thursday and were down 45.52 per cent or 3.76p to 4.50p in late morning trading. The group’s shares have fallen over 90 per cent in the last year.

The group specialises in lithium-ion and sodium-ion cells used in high performance electric vehicle batteries and long-duration energy storage.

In trouble: AMTE says it’s financial situation was ‘critical’, adding that it’s on the brink of collapse

In a dismal update, AMTE told investors: ‘The company continues to be in discussions with existing and potential investors concerning raising further finance. 

‘However, given the further passage of time since the most recent announcement on 29 June 2023, the Company’s financial situation is becoming ever more critical.’

It said it needed to find a solution ‘within the next few business days’.

While discussions are ongoing, their outcome is by no means a foregone conclusion.

AMTE said: ‘In the event that the Company is put into administration, trading of its shares on AIM would be suspended with immediate effect.’

In a dire warning to shareholders, the company added: ‘Accordingly, should the Company be unable to secure additional funding, the prospects for recovery of value, if any, by shareholders would be remote.’

In March 2021, the company, which was founded in 2013, was admitted to trading on the AIM market of the London Stock Exchange. 

The group is focused on launching a series of ‘next generation battery cells’ based on new chemistries and cell structures designed to solve a number of problems in power delivery, energy performance and safety.

Its manufacturing facility in Thurso, Scotland has, it claims, the second largest cell manufacturing capacity in the UK, with the group also maintaining a product development team in Oxford. 

AMTE’s proposed gigafactory in Dundee, Scotland is expected to be capable of producing over 8 million battery cells a year, ‘enabling the Company to rapidly scale up cell production’, according to the group. 

The firm warned last month that it had a matter of weeks to secure enough cash to stay afloat. 

The company previously said it was considering shifting manufacturing from the UK to the US to benefit from subsidies in the Inflation Reduction Act. 

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

The new plant in Somerset is expected to create 4,000 jobs and thousands more in the wider supply chain.

Tata said it would invest £4billion in the site, but it is understood that the government is also providing subsidies worth hundreds of millions of pounds.