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The project to build the 拢3.8bn Britishvolt gigafactory in Northumberland has been thrown into fresh doubt after the offices of its new Australian owner were raided by police on suspicion of tax fraud.

The Australian Federal Police attended the North Geelong office of Scale Facilitation last Friday wearing blue gowns and gloves for the seizure of IT equipment, according to multiple reports.

The search, a joint effort with Australia鈥檚 Serious Crime Taskforce, comes after reports in the country that staff at the firm have not been paid in several weeks.

Scale Facilitation told The Times: 鈥淲e have and will continue to fully co-operate with the Australian Taxation Office and now the AFP. We deny any wrongdoing.鈥�

Scale Facilitation, which was founded by Australian ex-PwC partner David Collard in 2021, bought the assets of Britishvolt in February through its subsidiary Recharge Industries in a deal said to be worth 拢8m. 

The troubled project had gone into administration after running out of cash. Main contractor ISG, which paused work on the 95 ha site last August, had said it was 鈥渞eady, willing and able鈥� to restart the job following the takeover.

The factory had been a flagship project for Boris Johnson鈥檚 levelling up policy and the government had committed 拢100m to Britishvolt if certain construction milestones were hit. 

The facility would produce much-needed batteries for electric cars and is seen as crucial for the long-term sustainability of the UK car industry.

The site鈥檚 size, transport links, deep seaport and access to clean energy are understood to make it an ideal location for a battery factory.

Collard鈥檚 previous ventures include an aborted cannabis business and providing the US state of New York with PPE during the pandemic.

He told the BBC in February the site in Blyth was 鈥渟hovel ready鈥� but that it would take six to 12 months before construction work could start again.