AMTE, the UK’s only battery cell manufacturer, collapses in a matter of days with no more money
- AMTE, the UK’s only battery cell manufacturer, says the situation is ‘critical’
- AMTE saw its shares fall 50% on Thursday; Investors warned of possible losses
AMTE Power, Britain’s only homegrown battery cell manufacturer, has warned it will collapse within days unless it gets another injection of cash.
Shareholders appear to be walking away with nothing if AMTE were to collapse, with the group warning that “prospects of value recovery” by equity investors are “distant.”
AMTE shares fell more than 50 percent early Thursday, falling 45.52 percent or 3.76p to 4.50p in late morning trading. The group’s share has fallen by more than 90 percent in the past year.
The group specializes in lithium-ion and sodium-ion cells used in high-performance batteries for electric vehicles and for long-term energy storage.
In trouble: AMTE says its financial situation was “critical,” adding that it is on the brink of collapse
In a somber update, AMTE told investors, “The company continues to engage with existing and potential investors about raising further funding.
“However, given the further passage of time since the most recent announcement on June 29, 2023, the company’s financial situation becomes increasingly critical.”
It said it needed to find a solution “within a few working days”.
While the talks are ongoing, their outcome is by no means a foregone conclusion.
AMTE said, “In the event that the company goes into receivership, trading of its shares on AIM would be suspended effective immediately.”
In a dire warning to shareholders, the company added: “Consequently, if the company were unable to obtain additional funding, the prospects of restoring any shareholder value would be slim.”
In March 2021, the company founded in 2013 was admitted to trading on the AIM market of the London Stock Exchange.
The group aims to launch a range of ‘next-generation battery cells’ based on novel chemistries and cell structures designed to solve a number of power delivery, energy performance and safety issues.
The production facility in Thurso, Scotland, claims to have the second largest cell production capacity in the UK, and the group also has a product development team in Oxford.
AMTE’s proposed gigafactory in Dundee, Scotland, is expected to be capable of producing more than 8 million battery cells per year, “enabling the company to rapidly scale up cell production,” the group said.
The company warned last month that it would have a matter of weeks to raise enough money to stay afloat.
The company previously said it is considering moving production from the UK to the US to take advantage of 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 Somerset plant is expected to create 4,000 jobs and thousands more across the wider supply chain.
Tata said it would invest £4 billion in the site, but it’s clear the government is also providing hundreds of millions of pounds in grants.