Battery firm Britishvolt is today reported to have averted collapse after securing additional funding.
The future of the start-up was thrown into doubt over fears it could run out of money after the UK Government rejected a £30million advance yesterday.
The firm wants to build a factory in Northumberland to make batteries for electric vehicles.
The government, which had championed the development, has committed £100million in total to Britishvolt for the project.
The BBC says it is understood the firm wanted to draw down nearly a third of this funding early, but the government refused.
The plea was rejected as the £100million is contingent on certain construction milestones, sources said.
Secured cash
Britishvolt has now secured cash for the business to stay afloat, but the identity of the new backer or backers has not been disclosed.
The firm has struggled to find investors to help fund the construction of its gigafactory in Blyth.
The plant had been expected to create 3,000 jobs, but has already been delayed several times, which has led to doubts over whether the £3.8billion project would become a reality.
But the business, which is yet to make any revenue, has carried out talks in recent months to try to secure fresh funds to stay afloat.
The project has been heralded by ministers as an example of "levelling up" - a Conservative aim of investing in communities to reduce economic imbalances in the country - with Blyth being one of the "red wall" seats to turn blue in the 2019 general election.
Pledges
Britishvolt has received pledges for up to £2billion of financing, but most of that cash, from investors Tritax and Abrdn, has yet to be released.
The business was forced to slash its valuation by £400million earlier this year, blaming market conditions and inflation. It had repeatedly delayed its production plans, with manufacturing now expected to start in 2025.
At one stage, the company was valued at £2billion and planned for a float on the London Stock Exchange.
Britishvolt has already struck memorandums of understanding to make batteries for UK car firms Aston Martin and Lotus.
FTSE 100
The UK's top share index, the FTSE 100, was up 80 points at 7,175 shortly after opening this morning, following yesterday's 46-point gain.
Brent crude futures were ahead 1.41% at $94.12 a barrel.
Companies reporting today
- Third-quarter results: BP
- Third-quarter trading statement: Rentokil Initial