Volta, the electric truck start-up, has revealed it is to collapse after supplier difficulties made it hard to raise funds.

Volta said it would file bankruptcy proceedings in Sweden, where the Volta group is based, and seek to appoint Alvarez & Marsal as administrators for its main UK operation where it has manufacturing and research and development facilities.

The number of jobs under threat was unclear at this stage but its assets could be seen as attractive to potential buyers given the race towards net zero in the battle against climate change.

The company had been conducting customer trials of its all-electric truck, the Volta Zero, in both the UK and on the continent and had only recently opened a service hub in north London.

The emission-free model, which has a range of up to 200 kilometres (124 miles), is designed for multiple deliveries within a large town or city.

It features a central driving position, saving costs by easing pressure on the manufacturing process through no need for left or hand-hand drive versions.

A series of cameras replace mirrors which, it argued, meant improved safety for cyclists and pedestrians.

Wage growth eases while numbers in payrolled employment fall back

Rolls-Royce takes axe to global workforce in latest efficiency drive

No room for tax cuts or spending increases with recession forecast, according to the IFS

The company said of its looming demise on Tuesday: “Piloting in five countries in Europe, we received fantastic feedback, which led to a strong pipeline of highly reputed customers who wanted to introduce our Volta Zero Trucks into their fleets.

“However, like all scale-ups in the EV manufacturing sector, Volta Trucks has faced challenges along the way.

“The recent news that our battery supplier (Proterra) has filed for Chapter 11 Bankruptcy, has had a significant impact on our manufacturing plans, reducing the volume of vehicles that we had forecast to produce.

Be the first to get Breaking News

Install the Sky News app for free

“The uncertainty with our battery supplier also negatively affected our ability to raise sufficient capital in an already challenging capital-raising environment for electric vehicle players.”

The statement said of its decision to declare insolvency: “The board has not taken this course easily or lightly and is fully aware of the significant impact this will have on the organisation’s dedicated workforce, as well as customers and partners.

“We would like to sincerely thank the Volta Trucks team and are incredibly proud of their pioneering work to deliver such an innovative zero-emission commercial vehicle.”

Related posts:

July inflation measure usually used to set annual rail fare rises is highest in ten years Travel hopes, retail slump, four-day week Treasury paves way to compensate Post Office scandal’s forgotten 555 Sub-postmasters who launched Horizon scandal legal fight secure extra compensation Bitcoin rallies slightly but still set for record losing streak Shapps to hold crunch talks with British Steel owner amid spectre of mass job cuts Hunt insists reducing inflation ‘remains government’s focus’ amid global banking volatility COVID testing tsar Sir John Bell quits board of Oxford spinout vehicle OSE More Amazon strikes on the cards after ‘insulting’ pay rise CBI hands new information to police after report of ‘serious criminal offence’ Facebook owner Meta expected to be hit with record privacy breach fine Wilko rescue bid collapses placing jobs at risk