Michael Gove has said the Government is ready to “stand behind” the right bidder to save the British Volt gigafactory site.

The Levelling Up Secretary was speaking during a visit to Blyth, Northumberland as he announced a £20.7m wave of levelling up funding to for the coastal town.

But Mr Gove refused to comment on the status of a bid from Australian firm Recharge Industries announced earlier this month (February 6) to take over the site.

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The Secretary of State told the Echo: “British Volt as a company, I am afraid, couldn’t make its own sums add up, but we do have a brilliant site here.

“The government is ready to stand behind the right company with the right investment because we do believe that a gigafactory here in Blyth would be an appropriate way of building on the skills that local people have and indeed the edge that this town has already displayed when it comes to renewables and the future of energy.

The Northern Echo: Mr Gove (second from left) was joined by (L-R) Hexham MP Guy Opperman, Blyth Valley MP Ian Levy and Northumberland County Council Leader Cllr Glen Sanderson on his visit.Mr Gove (second from left) was joined by (L-R) Hexham MP Guy Opperman, Blyth Valley MP Ian Levy and Northumberland County Council Leader Cllr Glen Sanderson on his visit. (Image: PR)

“I can’t talk about individual companies and I can’t at this stage speculate on who may or may not be the right partner but the UK Government is working hard in order to ensure that we can have the electric vehicles of the future powered by British batteries and that means investment in Blyth with the right partner at the right time.”

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Auditors for British Volt chose Recharge Industries as the preferred bidder to take over the majority of the business on February 6, saying a deal was expected to finalise within days. No deal is yet to materialise.

British Volt collapsed last month, laying off most of its 300 staff.

The business had high ambitions of building a £4bn battery plant in Cambois and hopes had been high for the start-up, but it never managed to secure enough funding for the project.

Mr Gove was visiting the Catapult Renewable Energy plant in Blyth after announcing the £20.7m package improve their housing, health, employment, and anti-social behaviour in the town.

Gove said the money will "revitalise" the town which has seen "deeply entrenched issues" limit opportunities.

He added: “For too long, Blyth has been deprived of the opportunities to make the most of its startling potential. 

“Deeply entrenched issues require an ambitious solution, which is why we have worked closely with local leaders on a package of measures that will improve the lives of the local community. 

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“Through revitalising dilapidated housing, upskilling the next generation and cracking down on crime, this town is finally getting the attention and investment it deserves to ensure everyone has the opportunity to thrive.” 

Speaking about the collapse of British Volt on a visit to Northumberland last week, Shadow Chancellor Rachel Reeves told the Echo: “Under this Tory government you got the promise of British Volt but now it’s gone under – I really hope it can be rescued but we shouldn’t have to rely on foreign takeovers to make sure we have a vibrant electric vehicle and battery production industry in the UK.

“We’ve made a commitment to having a national wealth fund to invest alongside businesses in the industries of.”