Speculation that gigafactory builders Britishvolt is considering entering administration

Britishvolt has been holding talks with a number of investors over the past few weeks after other supporters backed out.

But The Financial Times has claimed that the company could fall into insolvency this week.

A spokesman for Britishvolt said: "We are aware of market speculation.

"We are actively working on several potential scenarios that offer the required stability. We have no further comment at this time."

The factory has been hailed as transformative for South East Northumberland, creating 3,000 direct and 5,000 indirect jobs, but the “negative global economic situation” and recent market turmoil has caused the project to stall.

Its co-founder Orral Nadjari also left the firm in July.

Despite this, just two weeks ago Blyth Valley MP Ian Levy insisted the project was still a go. He said: “Many, many millions have already been invested. I am briefed that the management team are pursuing several opportunities that would give them the financial support they need to move the project into its next phases.

“I am in close and regular contact with the company, the government and the council and will continue to do all I can to bring these jobs to our area.”

According to the FT, Britishvolt has lined up advisors from EY to oversee the potential administration process.

The government backed the plans for the gigafactory in January and said it would support the firm with funding, understood to be around £100 million.

It has also received tens of millions of pounds of financial backing from FTSE 100 metals firm Glencore, which saw its shares dip on Monday morning.