Recharge Industries, Scale Facilitation workers go unpaid for weeks

The company behind plans to employ thousands of people at a proposed Avalon battery facility says it remains committed to the project amid reports workers have gone unpaid for weeks.

Founder of Australian company, Scale Facilitation, David Collard in the One World Trade Center office. Picture: Abby Holden

An Australian start-up behind plans to employ thousands of people at a proposed Avalon battery facility says it remains committed to the project amid reports workers have gone unpaid for weeks.

Recharge Industries and its parent investment company Scale Facilitation last year announced plans for a lithium-ion battery cell production facility – dubbed a “gigafactory” – north of Geelong.

But reports in The Australian last week revealed a “technical hiccup” with money tied up in England meaning the company’s local staff and some vendors went unpaid for a number of weeks.

Reports also circulated lease payments on the Geelong factory site had lapsed.

“Last pay cycle some staff and vendors experienced delays in receiving pay and/or entitlements due to issues with global money transfers and other related issues,” a Recharge

Concept image of Recharge Industries new large-scale lithium-ion battery cell manufacturing facility at Avalon.

Industries spokeswoman told the Geelong Advertiser.

“We are working at pace to rectify this and all outstanding amounts are being processed.”

The spokeswoman said there were “no outstanding lease payments” at its Avalon site, and the company remained “firmly committed” to its Australian plans.

“Early design works for electrical/power, roads, water, waste and environmental remediation have already commenced, as have structural and civil designs for the Avalon site,” she said.

“Recharge Industries continues to work with the Victorian Department of Transport and Planning, along with local and federal bodies.”

The first stage of the Geelong facility is expected to produce up to six gigawatts of batteries each year and support more than 400 jobs before production scales up.

Once complete, the company said the project could generate up to 30GWh hours of storage capacity and host “thousands” of jobs.

It comes months after the company announced plans for a $6.7bn gigafactory in northern England after the acquisition of collapsed UK battery maker BritishVolt.

Recent media reports have speculated the English site could be fast-tracked, despite the Avalon announcement coming first.

“As a company with multiple locations we’re looking to use a ‘design once, build many’ mindset,” Recharge Industries boss Rob Fitzpatrick told the Addy of the acquisition’s impact on the Geelong site last month.

“That’s the approach we’re taking with construction.”

The highly anticipated Geelong battery facility attracted the attention of Deputy Prime Minister Richard Marles, who touted the project as a manufacturing win for Geelong.

“What’s been made clear today is an intent to get this facility going as soon as possible, with a view to see construction happening in the next year or so,” he told the media last month.

“It’s going to be an amazing addition to the manufacturing base of Geelong.”

Uncertainty around Recharge Industries comes as another blow to the Avalon Industrial Park after a federal defence project at the precinct was scaled back.

The federal government announced earlier this year the second phase of Geelong’s multi-billion dollar Howitzer program would be scrapped after a defence review found the weapons would not provide enough range of lethality.

Originally published as Recharge Industries, Scale Facilitation workers go unpaid for weeks