Battery maker AMTE Power faces nervous wait for funds in threat to UK’s electric ambitions
The UK’s electric dreams are at risk of running flat, with London-listed battery maker AMTE Power yet to update shareholders on its race to raise funds ahead of a key deadline next month.
The country’s only homegrown battery cell maker warned investors on 15 June they were at risk of being wiped out unless the company secures fresh financing, with cash reserves running on empty as it looks to bring products to market.
“Should the company be unable to secure additional funding, the prospects for recovery of value, if any, by shareholders would be uncertain,” it said.
Since then, there have been no announcements over funding. With AMTE Power confirming a four-week deadline to secure the funds, the deadline could come as soon as 12 July – placing a ticking clock under the company’s negotiations with investors.
The London-listed company’s shares have plummeted since the announcement, dropping from 51p per share to 6p per share in the course of just 11 days. The company’s share price fell 13 per cent in today’s trading session alone on the FTSE AIM All-Share.
It now faces a nervous wait to see if the government or private investors will step in to offer more funds for what could be a vital cog in the UK’s early-stage electric vehicle industry and energy storage operations.
The Scottish Highlands-based firm specialises in lithium-ion and sodium-ion cells used in high performance electric vehicle batteries and long-duration energy storage.
It previously unveiled plans for a gigafactory at the former Michelin tyre plant in Dundee, which hopes to create more than 200 jobs by the end of the decade.
This makes the company a potentially valuable resource for the proposed new factories from Britishvolt and Jaguar Land Rover, while battery storage for solar and wind developments is increasingly essential as low carbon sources have a greater role in the UK’s energy mix.
The company previously warned it was considering shifting manufacturing from the UK to the US to benefit from subsidies in the Inflation Reduction Act.
To sustain operations, AMTE Power drew down a £580,000 loan facility from Highlands and Enterprise in March and £1m from its convertible loan facility with Arena Investors in April.
Highlands and Islands Enterprise, a government development fund, told City PM the company’s Thurso base was a “great asset” for the region and confirmed it was still in talks with AMTE Power over its financial plight.
Arena Investors has not responded to City PM’s request for comment, while the government declined to answer whether it would intervene to provide support to the company.
