Electric vehicle (EV) start-up Arrival has revealed that it may not be able to keep the company going next year.
The business is currently looking to cut costs to free-up cash – and it seems that the UK workforce could bear the brunt of this decision.
EV manufacturers have been struggling financially since the price of raw materials such as lithium has shot up and the availability of semiconductor chips – critical to building batteries – decreased significantly.
In the third quarter of this year, Arrival reported that its net loss sat at more than $310 million (£271m) – almost 10 times this time last year, which was $30.6 million (£26.2m).
“We will use cash on hand of $330 million (£289m) and look to secure new funds to achieve our goals in the US,” Chief Executive Denis Sverdlov said, who assured the business has enough money to at least keep running until next year’s third quarter.
Job cuts in the UK have not been announced but are rumoured to be part of a wider decision to balance the books.
After revealing the company’s status, Arrival’s shares in the US dropped by 33.2%.