Britishvolt has abandoned plans to build a new factory in Canada after reports of financial difficulty.

The battery manufacturer has now said it will focus on its main project of attempting to build a factory near Blyth in north-east England capable of producing batteries with a capacity of 30 gigawatt hours (30GWh) every year.

But this effort has run into serious financial difficulties, with Britishvolt almost slipping into administration last month. The Financial Times reported that £100 million of funding for the almost £4 billion Blyth gigafactory had failed to materialise.

The company was reportedly saved by a last-minute cash injection from commodities trading company Glencore.

A spokesperson for Britishvolt told the Guardian that ending the Canada project was a “difficult decision to take given the growing interest from potential battery cell customers in Canada, the positive engagement of the Quebec government, and the important role the country plays in the North American auto and aeronautical sectors.”

Several sources have also told the newspaper that Britishvolt is also having to adjust to the loss of several staff in recent weeks as the extent of its financial troubles became clear.

With its continuing financial difficulties, it currently remains unclear whether another proposed factory in the West Midlands, in partnership with Prologis, may come to fruition for the battery maker.

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