Britishvolt will not be ready to produce electric vehicle batteries from its plant in north-east England until 2025 – two years later than its original plans – as high energy plans disrupt the development.
But the company said it plans to supply sample cells "into customers’ hands in the next few weeks".
In recent weeks reports emerged that some construction work had been halted and costs slashed as the company awaited its next injection of funding, having so far raised a total of £200mln, including investments from FTSE 100 groups Glencore PLC (LSE:GLEN) and Ashtead Group PLC (LSE:AHT), and a promised £100mln from Downing Street.
Production of the first batteries from its 'gigaplant' on the site of the former Blythe power station was not likely until at the end of 2024, the company said earlier this month, as founder Orral Nadjari stepped down as chief executive.
But Nadjari, who remains the company's largest shareholder, told the FT that the start of production will be delayed until "mid 2025".
Graham Hoare, the former chair of Ford's UK arm, has been given the reins as acting CEO.
But Britishvolt told media that it has "readjusted its focus" on its Hams Hall scale-up facility in the Midlands, as well as on its Northumberland gigaplant, which is situated near to the village of Cambois.
“Plans remain on track and are agile and nimble to counter external market forces," said a spokesperson for the company.
“On top of current inflationary pressures, and an increase in interest rates, we are also seeing ballooning energy costs on the back of geopolitical uncertainties.
“We are also living through a global energy crisis, of which no one is immune. What it highlights is the fact that batteries are essential for a successful energy transition and energy independence. Our key priority is the success of the business and playing a vital role in the energy transition.”
The company said its first sample battery cells are "currently on their way to customers", and the company remains "on track" with its plans to get production volume cells to customers on time.
As it looks to raise more funds, the company has been forced to accept a valuation cut to £1.5bn from £2bn ahead of a planned stock market flotation, according to reports earlier this month, with speculation that funding in the near-term could come from renewable energy fund Copenhagen Infrastructure Partners.
The £200mln fundraising launched in February, where Glencore committed £40mln to build on its participation in previous fundraising rounds, is expected to need topping up in coming months.
On funding plans, the company told Proactive that it remains “on track” and is “adapting to be nimble and agile in the face of unprecedented market forces” that it stressed were also conspiring to change many other large companies' strategies.
“We continue to work with our financing partners and investors on funding scenarios for the build of the shell and core of the gigaplant project, and to develop the associated supplier park in Cambois,” the spokesman said.
Government support has been slow to arrive, even though analysts and the car industry have warned production is likely to shift to the continent unless the UK develops more EV battery capacity.
Britishvolt said it is progressing ahead of schedule with enabling works at its Northumberland site, with some construction work delayed as part of a process to optimise each of the project’s four phases and allow it to source materials given current supply constraints.
Earthworks and enabling work "has been completed to schedule and that portion of the work is concluded", the company said.
The scale-up facility at Hams Hall in the Midlands will act as "a mini replica" of the Blyth site, the spokesperson said, and allow the company to optimise its manufacturing processes and fine-tune battery chemistries.