The startup is set to begin court proceedings to enter administration as soon as this afternoon, according to reports by Bloomberg News, with a staff call scheduled for noon today.

Last week, the firm said it was in talks with a consortium of investors in order to help finance the construction of its Blythe battery factory, in a deal which would see its valuation drop more than 90%.

The rescue deal would have valued the beleaguered EV battery maker at just £32 million, according to reports in the Financial Times, down from the £774 million it was valued at in a funding round in February last year

The business is seen as a crucial element of the UK’s drive to grow its electric vehicle manufacturing capability. In January last year, it received an in-principle offer of government funding as part of its Automotive Transformation Fund, an £850 million programme to electrify Britain’s automotive supply chain.

Former prime miniter Boris Johnson hailed the construction of its Blythe facility, which was set to create 3,000 new jobs, as “a strong testament to the skilled workers of the North East and the UK’s place at the helm of the global green industrial revolution.”

Upon completion, Britishvolt’s Blythe factory was set to produce enough batteries for over 300,000 electric vehicles each year. The business has signed a number of deals to produce batteries for carmakers since the beginning of last year, including an agreement with luxury brand Aston Martin to develop high-performance battery technology.

Britishvolt has around 300 existing employees who agreed to a voluntary salary cut for November to help reduce costs.