The Thurso-based company, listed on the Alternative Investment Market (AIM), warned that failure to secure additional funding within the next four weeks may put shareholders’ recovery of value at risk. The announcement follows the firm’s disclosure in December 2022 that it would need to raise extra capital by April 2023 to meet operating costs.

AMTE Power, the last remaining homegrown commercial battery cell maker in the UK, has been in active discussions with potential investors to raise further finance. The company recently drew down a new £580,000 loan facility and £1 million from its convertible loan facility, highlighting the gravity of its financial situation. The outcome of ongoing discussions with potential investors, however, remains uncertain.

In a statement to investors, CFO Anita Breslin said: “Accordingly, in light of the company’s reducing cash position, should the company be unable to secure additional funding, the prospects for recovery of value, if any, by shareholders would be uncertain.”

The funding shortfall puts a question mark over AMTE’s plans to construct a major battery factory at the former Michelin tyre plant in Dundee. Initially, this project promised to create over 200 jobs within a few years, bolstering Scotland’s economy.

AMTE’s financial difficulties arise amidst concerns of a slowdown in electric car demand, with borrowing rates making ownership more expensive.

CEO 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.”