Firm behind Dundee battery factory plans in race to raise cash

AMTE Power announced plans last year for a "gigafactory" at the former Michelin tyre plant in Dundee

The company behind plans to build a major new battery factory in Dundee is urgently seeking to raise new funds after running short of cash.

AMTE Power said it needed "to conclude some form of fundraising within no less than the next four weeks".

It said it continued to have active discussions with potential investors.

But it warned that without further funding, "the prospects for recovery of value, if any, by shareholders would be uncertain".

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It remains unclear what that would mean for the Thurso-based company's plans to build a "gigafactory" at the former Michelin tyre plant in Dundee, creating more than 200 jobs within the new few years.

Those plans were called into question in April, when AMTE told Sky News it was considering shifting manufacturing from the UK to the US to benefit from American subsidies.

In December, the company - which develops batteries for high-performance vehicles and large-scale storage - reported that it would need to raise additional capital by April 2023 in order to meet its then current operating costs.

In recent months the firm, which is listed on Alternative Investment Market (Aim), has arranged a new £580,000 loan from Highlands and Islands Enterprise and secured £1m under its convertible loan facility.

In a statement released on Thursday, chief executive Alan Hollis said: "AMTE Power is the UK's only remaining homegrown commercial battery cell maker.

"We have established ourselves as a leading player in the sector, with differentiated lithium and sodium-ion technology on the cusp of commercialisation as indicated by our updates to the stock market in recent months.

"We are active in our engagement with stakeholders to raise funding and to communicate the importance of developing a homegrown battery manufacturing industry to enable a just transition to net zero, support the UK's energy security and unlock green industrial growth."