The company has been struggling to find investors to fund its plans to build a £3.8bn “gigafactory” in north-east England but now, according to the BBC, Britishvolt has averted collapse by securing additional funding for the business.
The future of the start-up was thrown into doubt over fears it could run out of money after the government rejected a £30m advance in funding on Monday.
The government, which had championed the development, had committed £100m in total to Britishvolt for the project and it is understood that the firm wanted to draw down nearly a third of the funding early, but the government refused.
Sources close to the company told the BBC that it had now secured cash to stay afloat in the short to medium term.
The identity of the new backers has not been disclosed.
Britishvolt had lined up the accountancy firm EY to carry out the administration but had been examining other options to try to find a last-ditch rescuer. The company is thought to have had enough cash reserves to last just a few weeks at most without further support.
Britishvolt was founded three years ago with the aim of building a factory that would be able to supply batteries to the UK automotive industry.
Britishvolt has struggled with disruption for months and the prospect of administration followed several months of talks with potential investors to help cover its rapidly growing costs until it was able to start producing batteries and generating revenues.
