Britishvolt , a UK startup planning a battery Gigafactory in northeast England that would supply future EVs, is reportedly facing a cash crisis that has left it on the brink of bankruptcy.

The Financial Times reports that the company’s financial position has deteriorated as a result of the UK government turning down a request for GBP30m emergency funding over the weekend. That has left it desperately looking for private investors but also facing the prospect of going into administration and making its employees (around 300) redundant.

Britishvolt is backed by mining company Glencore and the FT report – citing anonymous sources – said that it has been in discussions with a number of potential buyers including Tata Motors.

Analysts note that the company has been set-up to build a battery factory before securing orders from electric vehicle manufacturing companies – a strategy criticised by some.

The Britishvolt manufacturing site in northeast England is seen as a valuable asset particularly well suited to battery manufacturing and international shipping.

The FT reported that several companies have been in talks with landowners to express their interest in the Britishvolt site.

The three-year-old Britishvolt project has been hailed by the UK government as an example of Britain being in the forefront of investment in emerging sustainable industries. However, after securing an initial tranche of investment from Glencore and others, it has struggled to find the necessary larger funding commitments for the next stage of its plans.

See also: Can the UK auto industry survive without a vast domestic battery manufacturing base?