UK battery firm Britishvolt has averted collapse by securing additional funding for the business, the BBC understands.
The future of the start-up was thrown into doubt over fears it could run out of money after the government rejected a £30m advance in funding on Monday.
The firm wants to build a factory in Blyth in Northumberland which would build batteries for electric vehicles.
The government, which had championed the development, had committed £100m in total to Britishvolt for the project.
It is understood the firm wanted to draw down nearly a third of the funding early, but the government refused.
It has now secured cash for the business to stay afloat in the short to medium term, sources with understanding of the matter said.
The sources would not comment on the identity of the new backer or backers.
Britishvolt has struggled to find investors to help fund the construction of its so-called gigafactory in Blyth.
The plant had been expected to create 3,000 jobs, but has already been delayed several times, which has led to doubts over whether the £3.8bn project would become a reality.
But the firm, which is yet to make any revenue, has carried out talks in recent months to try to secure fresh funds to stay afloat.
The project has been heralded by ministers as an example of "levelling up" - a Conservative aim of investing in communities to reduce economic imbalances in the country - with Blyth being one of the "red wall" seats to turn blue in the 2019 general election.
In January, the government pledged £100m to Britishvolt to help it build its battery plant, as well as attract more private investment for the development.
