The battery business is facing challenges because investors are reluctant to provide startups with enough capital to compete with Asian firms who control the market.
With the noteworthy exception of Sweden’s Northvolt, some entrepreneurs looking to construct so-called gigafactories to compete with the Asian behemoths are choosing smaller facilities in the hopes of drawing additional investment in the future.
One of the many startups with lofty goals that fail is Britishvolt. It aims to spend 3.8 billion pounds ($4.4 billion) on the construction of a gigafactory in northern England, but its plans are in jeopardy due to its inability to secure sufficient funding.
In contrast to Northvolt, which established a joint venture with German automaker Volkswagen in 2019 and signed a long-term supply agreement with BMW in 2020, Britishvolt has not yet secured any significant clients or conducted any commercial testing of its technology.