LONDON’S BUSINESS NEWSPAPER
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ISSUE 3,918
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CITYAM.COM
VOLT FARCE MUCH-HYPED ELECTRIC VEHICLE BATTERY FIRM GOES INTO ADMINISTRATION
NICHOLAS EARL ELECTRIC vehicle battery maker Britishvolt has collapsed into administration, costing almost 300 jobs and putting in jeopardy Britain’s hopes of building a green automotive industry. The much-hyped start-up filed for administration yesterday after its board reportedly ultimately decided there were no viable bids to keep the company afloat. The future of Britishvolt has been
in doubt for months, after it failed to secure further government funds last October to build its £3.8bn gigafactory in Northumberland. It had asked for an advance of £30m on a promised £100m in support announced by the government, but Downing Street refused because Britishvolt had failed to hit construction milestones for the factory nor met private funding milestones. Shadow business secretary Jonathan Reynolds laid the blame at the
government’s door, dismissing its industrial strategy as a “failure”. He warned the UK was “losing the global race for electric vehicle battery manufacturing, putting our worldfamous car industry at risk”. Britishvolt’s collapse reflects a sharp fall from grace for the company, which was set up in 2019 to deliver a gigafactory site and sustainable low-carbon batteries to the UK’s motor industry. Michael Naylor, managing director of battery material specialist EV Metals, was
saddened by Britishvolt’s collapse. He told City A.M.: “It has suffered from the UK electric vehicle supply chain being disconnected and underinvested. It shows that government and private capital need to work together to integrate the supply chain if the UK car industry is to be protected and have a key role in the transition to electric vehicles.” EY has been appointed joint administrators of Britishvolt, and will now implement a closure and winding down of the company’s affairs.
FREE MORE DRAMA IN THE RING
London Metal Exchange’s top lawyer quits NICHOLAS EARL THE EMBATTLED London Metal Exchange (LME) announced its top lawyer was walking yesterday – a second high-profile departure of the young new year. Tom Hine, the group’s general counsel, is leaving to set up his own business. His departure comes with the LME facing an impending lawsuit brought by Elliot Advisers over a March 2022 decision to suspend nickel trading amid unprecedented price volatility. That call has been the subject of a blistering internal review by consultancy Oliver Wyman, and the Bank of England and the Financial Conduct Authority is also reviewing the exchange’s actions and safeguards. Hine’s departure comes hot on the heels of chairman Gay Huey Evans earlier this month, who said she would not be seeking re-election. His duties will now be overseen by the LME Group legal management team, which has been temporarily assuming his responsibilities during a period of extended leave which began last September. Hine leaves the LME after 17 years
Wall Street giant pledges to ‘coach’ staff if productivity falls working from home CHRISTOPHER DORRELL AMERICAN banks have been pushier than most of their international rivals in getting their staff back to work – and now even one of the firms with a more gentle approach appears to be hardening its line.
Citibank boss Jane Fraser told a Bloomberg event at Davos yesterday that workers wouldn’t be able to get away with taking it easy while working from the spare bedroom. “You can see how productive someone is or isn’t and, if they’re not being productive, we bring them back to the office,” she said.
“And we give them the coaching they need until they bring the productivity back up again.” Fraser said there was an “important balance” to be struck on
the return to work. One City recruiter told City A.M. recently that firms insisting on bringing people back in five days a week were struggling to retain even well-paid staff. “We’re going to have to keep listening to our people and getting that balance right but, if you don’t
listen to them, you’re in danger of havings some problems,” she said. Fraser’s comments strike a different tone to that of some of her Wall Street rivals. Goldman CEO David Solomon was a vocal opponent of hybrid working in the aftermath of the pandemic, as was JP Morgan’s Jamie Dimon.
INSIDE PAPERCHASE ON LIFE SUPPORT P3 CARILLION: FIVE YEARS ON P6 OCADO SALES FALL P7 CHINESE ECONOMY RUNS OUT OF STEAM P9 LONDON DONE RIGHT P17