Electric car battery start-up Britishvolt has confirmed interim funding that it says will help push the company through to December.

The Blyth gigafactory would produce enough batteries for over 300,000 electric vehicles each year

The government-backed company was on the brink of collapse on Monday according to media reports but told the press it was “actively working on several potential scenarios that offer the required stability”.

It’s now secured five-week “near-term” funding from an unnamed investor that directors say will bridge the gap over the coming weeks to a more secure funding position for the future.

But staff at the business have also voluntarily agreed to a temporary salary reduction for the month of November and it’s believed executives are working without pay for this month.

The business is planning to launch a £3.8bn gigafactory, based in Blyth in Northumberland and supporting government plans to make the UK automotive industry a leader in electric vehicles.

In January, Britishvolt secured £1.7bn funding from UK asset investment giant Abrdn and fund manager Tritax on the back of a government pledge of £100m for the project, with the latter supporting the UK’s 10-point plan for a “green industrial revolution”.

But the company said it had since suffered “challenging external factors”, due to deteriorating market conditions after Russia’s invasion of Ukraine. And it was believed to be poised to appoint administrators this week after the Government rejected a £30m advance on the funding, which had been dependent on construction milestones for the forthcoming plant.

Britishvolt said it continues to explore both short- and long-term funding streams that will “enable us to deliver on our plans to build a thriving localised, sustainable battery ecosystem based on next-generation cell technology”.

It also said it had received promising approaches from several more international investors in the past few days.

And Britishvolt chairman Peter Rolton told the Financial Times he was “confident” of finding the additional funds needed for longer-term security.

A media spokesperson added: “We want to thank our employees, suppliers & investors, for their continuing belief in Britishvolt. It is important that Britishvolt is a success not only for the close to 300 employees currently working for the company, but also for the many thousands of jobs we intend to create in the UK as we progress our plans. The ‘Britishvolt Effect’ is also of huge strategic importance to UK plc and the country’s standing on the global battery stage.”

Once complete, its gigafactory would be able to produce enough batteries for over 300,000 electric vehicles each year: equivalent to around 25% of current UK vehicle manufacturing and supporting the 2030 ICE ban. It would also create 3,000 direct jobs and another 5,000 indirect jobs in the wider supply chain.

However, the start of construction at the plant has been delayed several times and is now expected to not start until the middle of 2025.