In a significant blow to the UK's green energy ambitions, battery storage firm Powervault has collapsed into administration. The London-based company, once tipped as a major rival to Tesla's Powerwall system, has appointed administrators to oversee its wind-down.
A High-Profile Failure in Home Energy Storage
Powervault had raised more than £10 million from investors to fuel its growth, including a £3.8 million funding round in 2023. Founded in 2012, the firm developed wall-mounted batteries for homes, designed to store energy from solar panels or charge electric vehicles.
Its backers included prominent figures such as serial investor Simon Acland, Harmony Energy founder Peter Kavanagh, and Cornwall Insight founder Nigel Cornwall. The company also secured support from public bodies, having been backed by the Mayor of London’s Greater London Investment Fund and the British Business Bank. A partnership with energy giant Octopus Energy further underscored its potential.
However, the latest accounts for the company revealed a loss of approximately £2.5 million in 2024. Corporate filings now show that the firm has appointed administrators from Menzies to manage its closure. Both Powervault and Menzies declined to comment on the situation.
A Challenging Market for UK Battery Startups
The collapse of Powervault is not an isolated incident. It highlights the intense pressures facing British firms trying to compete in the global battery technology sector. Companies are grappling with cheaper alternatives manufactured in China and face tighter funding environments compared to rivals in the United States.
This pattern was seen with the high-profile failure of EV battery startup Britishvolt, which entered administration in January 2023. That company's collapse made around 300 staff redundant after it failed to secure a £3.8 billion gigafactory in Northumberland. Its assets were later purchased by Australian firm Recharge Industries.
Broader Implications for the UK's Green Tech Sector
The difficulties extend beyond stationary battery storage. Last year, Silverstone-based electric vehicle business Lunaz, which had backing from David Beckham and was championed by Labour leader Sir Keir Starmer, placed its commercial vehicle arm into administration following production setbacks.
These successive failures raise serious questions about the UK's ability to build and sustain a competitive domestic battery supply chain. The sector is crucial for the nation's net-zero goals and its automotive future, yet firms are struggling to transition from promising startups to viable, scaled businesses.
The administration of Powervault, a company with substantial investor backing and official support, serves as a stark reminder of the formidable challenges within this critical industry.
