Kwarteng gives backing to electric vehicle and battery production - questions in the Commons
Kwasi Kwarteng MP, The Minister of State, Department for Business,
Energy and Industrial Strategy, today answered questions in the
House of Commons on the future of car manufacturing by Vauxhall at
Ellesmere Port and the government's strategy for battery
manufacturing. The question was put by former Business Secretary Rt
Hon Greg Clark MP (Tunbridge Wells, Conservative). Rt Hon Kwasi
Kwarteng MP, The Minister of State, Department for Business, Energy
and Industrial Strategy...Request free
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Kwasi Kwarteng MP, The Minister of State, Department for Business, Energy and Industrial Strategy, today answered questions in the House of Commons on the future of car manufacturing by Vauxhall at Ellesmere Port and the government's strategy for battery manufacturing. The question was put by former Business Secretary Rt Hon Greg Clark MP (Tunbridge Wells, Conservative). Rt Hon Kwasi Kwarteng MP, The Minister of State, Department for Business, Energy and Industrial Strategy (Spelthorne, Conservative): I'd like to pay tribute to my right honourable friend for the great work he did as a Secretary of State. He was the first Secretary of State for BEIS. And I think that we can all say we appreciate the outstanding work he did at that time. The government is absolutely committed, to ensuring the future of manufacturing at Ellesmere Port and to secure the jobs and livelihoods of the workers at the plant. Since I was appointed Business Secretary last month, I've held a number of meetings with both Vauxhall and its new parent companies, Stellantis, to support the company to make a positive investment decision. I've also held only last week a constructive meeting with the general secretary of Unite, Len McCluskey. Over the coming days and weeks, I myself, fellow ministers and officials at BEIS will continue this intensive dialogue with the company. More widely, Mr Speaker, the government is continuing its longstanding programme of support to keep the British automotive sector at the forefront of technology and maintain its competitiveness by building on the work that my Right Honourable friend himself did through the automotive sector deal. It is my priority as Business Secretary, to ensure the UK continues to enjoy the benefits from our transition to ultra-low and zero-emission vehicles by continuing to build an agile, innovative and cost-competitive supply chain which we need to secure vital international investment. With that in mind, Mr Speaker, we remain dedicated, absolutely committed to securing UK battery manufacturing. Indeed, as part of the Prime Minister's 10 point plan, we have already announced £500 million to support the electrification of vehicles and their supply chains and other strategically important technologies through the Automotive Transformation Fund over the next four years. We continue to work with investors through the Automotive Transformation Fund and to progress plans for manufacturing the batteries that we will need for the next generation of electric vehicles here in the UK. Government and industry have also jointly committed. Mr Speaker, almost £1.5 billion through the Advanced Propulsion Centre and Faraday Battery Challenge to support the research, development and manufacture of zero and low emission technologies. Between 2013 and 2020, the Advanced Propulsion Centre has funded 67 collaborative R&D projects, creating and safeguarding nearly 47000 jobs with projected CO2 savings of 244 million tonnes. To repeat, we are 100 per cent committed to making sure that the UK continues to be one of the best locations in the world for automotive manufacturing. And we're doing all we can to protect and create jobs while securing a competitive future for the sector here in the UK in particular, including Ellesmere Port. Rt Hon Greg Clark MP (Tunbridge Wells, Conservative): Thank you very much indeed. Mr Speaker, I bring to the House's attention that I may vice-chair of the all-party parliamentary groups on the automotive sector and the chemicals industry. I'm grateful to the Secretary of State for his statement and for his kind words. The industrial strategy made a number of commitments. One was to make Britain home for vaccine development and to build vaccine manufacturing capability. Another was to make Britain a leading manufacturer of electric vehicles, including the batteries that power them. I mention them both not to claim special prescience, but rather the opposite. Both are obviously required if our industrial strengths are to continue in the future. In the case of electric vehicles, there are three important facts. One, we have one of the most important, diverse and efficient car industries in the world, employing over 800,000 people in all parts of Britain. Two, by 2030, no new car will be sold in Britain with simply a petrol or a diesel engine. And three, unless the batteries for vehicles made in the UK are manufactured in Britain, within five years, the cars that they power will no longer be able to be exported tariff-free to the EU. So we urgently need to install the manufacturing capacity in the UK. This means not just one Gigafactory, but many. It all needs to be planned, built and operating at scale within five years. In the case of Vauxhall Ellesmere Port, a decision is imminent, as the Secretary of State says, as to whether a new electric model will be built there. The same is true of Jaguar Land Rover in the West Midlands and supply chain companies like GKN. A laissez-faire approach won't do it, and neither will just general encouragement. It requires sleeves rolled up, concrete action to be taken now between government and industry, just as was the case with vaccines. So will the Secretary of State, for whom I have high regard, make this commitment today and do whatever it takes urgently to make sure Britain is a global force in manufacturing electric vehicles long into the future. Rt Hon Kwasi Kwarteng MP, The Minister of State, Department for Business, Energy and Industrial Strategy (Spelthorne, Conservative): My Right Honourable Friend is quite right. I think the issues that are raised by his question are of critical strategic importance. He and I fully appreciate the work that he did driving the industrial strategy. The industrial strategy, as he pointed out, set the foundation for vaccines and the success of the vaccine rollout. And he is quite right to point out that we need the same rigour, the same focus on making sure that the United Kingdom continues to be an attractive place in which to invest in electric vehicles, the manufacture of electric vehicles, and in order to meet my right honourable friend, the prime minister's ten-point plan. Electric vehicles were a key part of that ten-point plan. Lucy Powell MP (Manchester Central, Labour (Co-op)), Shadow Secretary of State for Business, Energy and Industrial Strategy: [00:08:12] Thank you very much, Mr Speaker. And thanks to the Right Honourable members at Tunbridge Wells for securing this urgent question, I agree wholeheartedly with him. Labour stands ready to do all we can to secure the future of Ellesmere Port. The plant has been a major employer in the north-west for decades and is highly efficient and productive. It would be a travesty if it didn't have a long term future and that's now in the government's hands. The uncertainty facing Ellesmere Port and other car plants speaks to a deeper problem caused by the government's inaction on automotive. They've been asleep at the wheel. First, automotive has had no sectoral support during Covid, despite the worst trading levels in 50 years. Compare this with the billions of euros in France and Germany. [00:00:04] Second, the green transition for carmakers isn't underpinned by any meaningful investment or strategy. They need more than the platitudes of the ten-point plan. They need a world-leading Gigafactory plan. [00:00:17] Third, ministers said the Brexit deal would unleash government to back British industry, but it hasn't. Instead, our EU competitors are unashamedly pumping support into their carmakers, while ours are left hamstrung by new red tape. It's no wonder that international companies, like Sollantis, are looking at their long term investments and wanting more from our government. So what further guarantees can he give to Solantis and others that he will back the switch to electric with real support? What is the Secretary of State demanding from the budget tomorrow for automotive? Will he bring forward plans to create green jobs today by raising his ambition on Gigafactories and other infrastructure? And finally, will he actually do whatever it takes to help British industry post-Brexit to ensure the bright future our businesses and workers deserve? Rt Hon Kwasi Kwarteng MP [00:01:12] I don't recognise some of the premises of her question. I mean, clearly the prime minister's 10 point plan, far from being full of platitudes, is a world-beater. I just saw a story in The Guardian yesterday where the U.N. was saying that other countries are struggling to meet our targets and our performance on decarbonisation and net-zero. So I don't recognise that an absolutely she's right to suggest that we are absolutely focussed on securing those vital jobs. We are totally committed to net zero. I was lucky enough to be the energy minister who landed the Energy White Paper, the first energy white paper that the government published in 13 years. And we're very focussed on actually trying to land investment to drive the Green Industrial Revolution in this country. Ian Liddell-Grainger MP (Bridgwater and West Somerset, Conservative) [00:02:14] The secretary of state is fully aware of the remarkable sight we have in Somerset at Gravity where there is not only a mega factory but also a battery factory. We would welcome the secretary of state's support for the Gravity site because it is one of the best sites in the United Kingdom. And we have just applied for Freeport status as well to help the situation with Bristol Port. Therefore, will the secretary of state, please stand up and say that this is one of the sites in Britain that should be considered for the very important future that holds us all for car manufacturing and battery manufacturing in the United Kingdom. Rt Hon Kwasi Kwarteng MP [00:02:54] Thank you, Mr. Speaker, I'd be delighted to make a statement that we're considering these sites and we're looking at these sites. M honourable friend will know that I visited his constituency at Hinkley Point, and seen the great work there. I have no doubt that the manufacturing skill and competence of his constituents in his area will be able to sustain an excellent gigafactory. Stephen Flynn MP (Aberdeen South, Scottish National Party) [00:03:27] Mr. Speaker, I commend the member for securing this question. The reality is that there are two key: the disaster that is the Brexit deal, but also, as has been said, how this government intends to save and create jobs in the UK whilst driving changes necessary to reduce vehicle emissions. On Brexit, the message is clear for all to see. And the owner of Ellesmere Port said last month that it might make more sense to invest in Europe because the biggest market is on Continental Europe. The Tories need to own their mess. So does the Secretary of State now, even grudgingly, accept the deal is not fit for purpose? And on vehicle emissions, the shift towards electric, and perhaps even more so hydrogen, is vital to deliver reductions necessary. But we need to ensure that we create a supply chain here at home that supports vehicle manufacturers to make an affordable transition. The government needs to go further and faster in their financial support. Rt Hon Kwasi Kwarteng MP [00:04:28] Clearly, the honourable gentleman raises two issues. I think the Brexit deal is a success, given the fact that we had two general elections in that period. We had five years in which we spoke about nothing other than Brexit. And to reach a deal in the time we did was successful. And clearly, Nissan committed themselves to Sunderland on the back of this very good deal. [00:04:53] He's quite right. I think we can go further and faster in terms of driving the energy transition. I think my right honourable friend, the Prime Minister's ten-point plan and the energy white paper, which I've referred to, point the way in that regard. Mark Pawsey MP (Rugby, Conservative) [00:05:12] Mr Speaker, the rules of origin requirements to continue selling vehicles tariff-free to the EU and the high proportion of the cost of batteries in electric vehicles by providing Gigafactory is urgent. The Minister will be aware of proposals for the Coventry Airport site, which are already at an advanced level, is close to the Battery Industrialisation Centre and of course, in the historic home of the motor industry, making it an obvious location. Does the Secretary of State agree this development in Coventry would place the UK at the heart of electric vehicle manufacturing? Rt Hon Kwasi Kwarteng MP [00:05:47] Mr Speaker, yes, my honourable friend is quite right, I mean, there are lots of sites which have potential in this field of gigafactories and we remain absolutely committed to securing UK Gigafactory capacity. There is a range of factors, as my honourable friend will appreciate, that will influence the decision of any location of Gigafactory investment. But I'd be very happy alongside officials to discuss with him further plans and have further discussions about our strategic future in this important area. Justin Madders MP (Ellesmere Port and Neston, Labour) [00:06:27] Thank you, Mr Speaker. Last Sunday, my constituents woke up to newspaper headlines saying a decision was due to be made on the future of Vauxhall Motors on Tuesday. Tuesday came and went and the media speculation increased. But by the end of the week, those whose livelihoods depend on the plant were none the wiser. I'm sure it's clear to all just how much anxiety all this speculation has generated, but it will be worth it if it focuses the government's attention on the urgent need to deliver on a plan to ensure our great British car industry gets all the support it needs to move to electric vehicle production. So can I ask the secretary of state if he does understand the importance of getting the right decision, not just for the people of Ellesmere Port, but also for the signal it sends out about securing the future of the automotive sector stands in the government's priorities? Rt Hon Kwasi Kwarteng MP [00:07:15] I think the honourable gentleman is quite right, there are two issues here. There is a local issue and I can only imagine the uncertainty under which the excellent workers and his constituency and in that site are working under. And there's, of course, a national issue. And the question we will have to ask ourselves is whether we are committed to actually having Gygafactories in this country. We are 100 per cent committed to that. And I'm very hopeful that we can reach a satisfactory conclusion in terms of the continued investment and support for Stolantis in his constituency. John Howell MP (Henley, Conservative) [00:07:57] I'm grateful for what the secretary of state has said about the amount of investment that is being made in batteries. But I wonder whether I could ask him for his support for companies such as those at the Culham Science Centre, which he recently visited, who are undertaking groundbreaking research in batteries, including in aviation. Rt Hon Kwasi Kwarteng MP [00:08:23] I'm very pleased that my honourable friend has raised that question. I had an excellent visit, as he remembers a few months ago in his constituency in Culham. I spoke to many people involved in business who are driving the net-zero agenda, and I'm very happy alongside him to support those efforts right now. Sarah Olney MP (Richmond Park, Liberal Democrat) [00:09:00] Increasing demand for electric vehicles can help to create the green jobs we need as we transition away from carbon-emitting industries. Would the secretary of state agree with me that cutting VAT on electric vehicles to five per cent can help to stimulate that demand? Rt Hon Kwasi Kwarteng MP [00:09:18] There are lots of ways that we are considering to stimulate the demand to drive this critically important agenda. It was a big step for the prime minister to announce that we would try and phase out the purchase of ICUs by 2030. There was some opposition to that, but it was clearly the right move. And we're looking at all sorts of other measures to promote the demand that she wants to see. Andrew Selous MP (South West Bedfordshire, Conservative) [00:09:51] Many of my constituents make the highly successful Vivaro fine at the plant in Luton. Can the secretary of state say what the government is doing to encourage electric van manufacture here in the United Kingdom? Rt Hon Kwasi Kwarteng MP [00:10:07] I think this is a critically important point, and my honourable friend understands Stellantis because he refers to the successful plant in Luton. And what we want to see is a renewed commitment to Ellesmere Port, just as that which is found in Luton. And he will know that, as I said to my right honourable friend, the prime minister's fourth point of his ten-point plan was all about driving electric vehicle take-up. And obviously, that includes vans. Rt Hon Sammy Wilson MP (East Antrim, Democratic Unionist Party) [00:10:44] It's now clear that the policy of phasing out the production of petrol and diesel cars is going to have an impact on employment in some of the areas of the United Kingdom where we have higher than average unemployment. What impact assessment has the government done on the effect of this policy on revenue for fuel duty? What impact has been done on the environmental impact of the mining of earth metals, one of the dirtiest industries in the world? And what impact has been done on the impact on poor families who will now face higher capital costs when it comes to purchasing cars? Would it not be a far more conservative policy to allow manufacturers and consumers to make the choice as to which cars they make and which cars they drive? Rt Hon Kwasi Kwarteng MP [00:11:40] Well, clearly the Right Honourable Gentleman and I may have a different view on the threat of climate change and particularly the drive to net zero. I would suggest to him that the Prime Minister's ten-point plan has been well received. I think there's been huge support across the United Kingdom to see cleaner technologies, to see electric vehicles. And I would suggest that many people actually are very supportive of the measures the government is making in this regard. David Johnston MP (Wantage, Conservative) [00:12:17] Thank you, Mr Speaker. Last month, I met with Johnson Matthey, who are opening a new flagship site, Meltham Park, in my constituency, where they will develop and test advanced batteries working both to lengthen the driving distances and shorten the charging times. Does my Right Honourable friend agree with me that this is a very welcome development that supports the government's ambition to transition us to electric vehicles as well as help us meet our 2050 net-zero goals? Rt Hon Kwasi Kwarteng MP [00:12:48] Mr Speaker, I'm delighted to point out and answer that question because it relates to the earlier answer I gave to the honourable gentleman. There are new jobs. There are new opportunities in this push towards net zero. And I'd be very pleased to visit the site of Johnson Matthey in Wantage. And I think it's an excellent development for which we're all extremely pleased. Kim Johnson MP (Liverpool, Riverside, Labour) [00:13:19] Thank you, Mr. Speaker. A thousand jobs are at risk if the Ellesmere Port plant closes and a further six thousand in the supply chain. So does the minister agree the future of the Vauxhall Elsmere Port plant and the GKN plant in Birmingham could be secured if the government commits to investing in a green recovery for the automotive sector to reduce new electric model, protect thousands of jobs because actions do speak louder than words?
Rt Hon Kwasi
Kwarteng MP [00:13:51] We as a government are 100 per cent
committed to making sure that those jobs stay through
conversations, negotiations, if they may be called that, with the
company and we also are very committed to the prime minister's 10
point plan and actually driving the energy transition, which will
have economic impacts, secure jobs and be a great thing not only
in the fight against climate change but for the economic
development of our country. Mark Jenkinson MP (Workington, Conservative) [00:00:21] The transition to electric vehicles is essential if we are to hit a world-beating commitment of net zero emissions by 2020. Can my Right Honourable Friend set out his plans to support the wider rollout of vehicle charging points in places like my Workington constituency when our reality is necessitated the slower uptake of electric vehicles? Rt Hon Kwasi Kwarteng MP [00:00:41] My Honourable Friend raises a critically important point. Clearly, without a successful rollout of charging points, we will struggle to meet the targets that we've set ourselves. We've committed already £19 million to facilitate the rollout of large scale charging infrastructure projects across England for local areas, and we will continue to support that situation. I'd be very happy to have a conversation with him about how we can best do that. Lilian Greenwood MP (Nottingham South, Labour) [00:01:18] The Chair of the Science and Technology Select Committee could not have been clearer. For the British car industry to succeed in the growing electric vehicle market, protecting thousands of jobs, including here in the Midlands. We must have UK Gigafactories manufacturing electric batteries by the time the rules of origin change. How many UK Gigafactories will we have by 2024 and what specific steps is he taking to secure them? Rt Hon Kwasi Kwarteng MP [00:01:55] As the honourable lady would have seen in the questions, there are a number of sites that we're looking at. We are absolutely committed to having at least one, if not more. In fact, I think we need more than one Gigafactory site before the next election. And I could not be clearer about our commitment to the transition and to reaching net-zero ultimately by 2050. Rt Hon Jeremy Wright QC MP (Kenilworth and Southam, Conservative) [00:02:24] Mr. Speaker, I'm sure my right honourable friend will agree that the best sites for gigafactories are those where the automotive sector is strong, which transport connexions are good, and where battery technology development is already a feature of the local economy. And in that regard, I am entirely with my friend for Rugby that the Coventry Airport site is an excellent site. It's also coincidentally, despite its name, in my constituency, My right honourable friend would be very welcome to visit at any point. I'm grateful for his encouraging words about it. But can I ask him also to accept that sites, however good, are no good without occupants? And can I ask him to use the resources he's talked about and his time and that of his officials to identify the right sites early and then to work with those promoting them to secure occupants, companies that will manufacture at batteries on-site as soon as we can. Rt Hon Kwasi Kwarteng MP [00:03:15] I'd be very happy to give him that assurance. That's exactly what we are trying to do. We are talking to local communities. We're talking to local leaders about various sites up and down the country where we can site Gigafactories. I'm very conscious of the fact that Coventry, given its history, the Midlands, would be an excellent place in which such a factory could be located. Jack Dromey MP (Birmingham, Erdington, Labour) [00:03:42] Mr Speaker, for half a century the GKN plant in Erdington has manufactured world-class components for our 800,000-strong automotive industry - drive shafts and the prop shafts. Melrose, who took over GKN three years ago, have now announced their intention to close the Erdington plant and to export the 519 highly skilled jobs in the plant to continental Europe in breach of assurances that were given at the time of takeover. Will the Secretary of State, who has agreed to meet with us on Thursday of this week, work with us on alternatives to closure - the workforce, the union Unite and myself? Because any strategy for the transformation of the industry to an electric future will vitally require high value components. And those high value components should be built here in Britain. Rt Hon Kwasi Kwarteng MP [00:04:44] I recall that I gave that pledge at parliamentary questions here on the floor of this House, and I'm delighted that I'll be seeing him and others on Thursday to see what can be done in respect to this critical issue. Steve Double MP (St Austell and Newquay, Conservative) [00:05:03] Mr. Speaker, I draw the House's attention to my role as the chair of the APPG for critical minerals. All of these batteries for these electric vehicles are going to require a reliable supplier of critical minerals, particularly lithium. The Secretary of State will be aware that a significant deposit of lithium has been identified in Cornwall and its commercial extraction is being developed by two companies. So would the secretary of state confirm that the government recognises the huge potential benefit to the UK of having a secure domestic supply of lithium? And what he also agree with me that it would make sense for battery manufacturing to be located as close as possible to the extraction and processing of lithium? And to that end, would he meet with me to discuss the potential opportunity of the Gigafactory being built in Cornwall? Rt Hon Kwasi Kwarteng MP [00:05:57] I would be very happy to meet with him to discuss the potential siting of a Gigafactory. He will also appreciate that through the Getting Building Fund, the government is already committed to supporting a lithium extraction pilot plant in Cornwall. And our Faraday Battery Challenge already supports work to find and use lithium across the United Kingdom. This is a critically important issue. We fully understand the importance of the security of a supply chain, and I'd be very happy to discuss this with him and more specific Cornwall-related issues at a time that is convenient for both of us. Bill Esterson MP (Sefton Central, Labour) [00:06:42] The secretary of state has mentioned his 10 point plan a number of times. But the ten-point plan won't mean much unless the government supports existing manufacturing, including Vauxhall at Ellesmere Port. So will he do whatever it takes for Cheshire and Merseyside and in particular for Vauxhall, rather than just talking about it, so that low carbon vehicles really can be made in Britain? Rt Hon Kwasi Kwarteng MP [00:07:11] We are talking about it. We're talking with the company directly in order to secure vital investments. We want to see those jobs. We've said time and time again that we're 100 per cent committed to the energy transition and to having world-class automotive manufacturing here in the UK. Peter Gibson MP (Darlington, Conservative) [00:07:32] A key component of factory manufacturing is rare metals. Can my right honourable friend outline what support he is giving to British businesses seeking to harvest poli (?) nodules from our seabed? Rt Hon Kwasi Kwarteng MP [00:07:51] Mr Speaker, the government is committed to exploring opportunities that will support the next generations of clean technologies, and we're looking very much at the field of critical raw materials. He will remember when I was the energy minister that I was committed particularly to this form of technology. It's an exciting development, admittedly in its early stages. But I'm always looking to drive innovation in this area. Alison McGovern MP (Wirral South, Labour) [00:08:19] Thank you, Mr. Speaker, and I support all that, my neighbour, the member of parliament for Ellesmere Port, said on this. Specifically the impact of this question on the people in our area. And I support what he said about needing to move quickly on this, but specifically on the people. Whatever the strategy, whatever the plan is, it has to be about jobs and opportunities, particularly for young people who could be facing a very serious unemployment situation. So can I ask the secretary of state what discussions he's had with the metro mayor for Merseyside about how we make sure that whatever the plan is for automotive, it has the fortunes of young people at its heart? Rt Hon Kwasi Kwarteng MP [00:09:11] I've met Steve Rotherham a number of times in previous ministerial roles, and I believe that I'm setting up a meeting with him very soon. He's someone who has a great knowledge of the area. I'm particularly interested also not only in Ellesmere Port but in the possibilities of the high net industrial cost of decarbonising that. And I'm sure I'll be speaking to the mayor that she mentions very soon. Jacob Young MP (Redcar, Conservative) [00:09:35] Can we now go to. I appreciate I'm the fifth member to stand up and ask for it, but when he mentions the Gigafactory, he should look no further than Redcar in Cleveland in Teeside. We have a fantastic workforce. So can I invite my right honourable friend to come to Redcar and Cleveland and to see a potential site for a Gigafactory? Rt Hon Kwasi Kwarteng MP [00:09:56] I'd be delighted. I'm clearly going to be a much-travelled Secretary of state investigating all these potential sites for gigafactories. But I want to pay tribute to the excellent work he's done in his short time in the House of Commons. He's really made an impact and got his voice heard. And the people of Redcar very well served. I'd be very happy to visit the constituency, as I have done in the past, to look at the opportunities for the energy transition. Christian Matheson MP (City of Chester, Labour) [00:10:24] The workforce and the management at Ellesmere Port have done everything that has been asked of them to keep that plant productive and efficient. But as my honourable friend has said, they are on tenterhooks waiting for a decision. I pay tribute to the Right Honourable Gentleman for his excellent introduction, but when he was Secretary of State, he kept all the parties involved, employees and the local council, Cheshire, West and Chester. Can I ask the Secretary of State does the same because we want to help him to get the right result? Rt Hon Kwasi Kwarteng MP [00:10:54] Yes, I really appreciate those words of support and help. I mean, this is a cross-national issue. It's a cross-party issue. And I'd be very happy to engage with him. He knows I've already made a commitment to visit the high net industrial cluster near his constituency. And I'm very, very much committed, as previous secretaries of state have done, to do all I can to make sure that we get the right investment in the right result. Rt Hon Alun Cairns MP (Vale of Glamorgan, Conservative) [00:11:23] The secretary of state will be familiar with my long-standing ambition to see a Battery Valley or a Battery Vale established in Wales, and I was delighted when Britishvolt prioritised St Athan in the Vale of Glamorgan in my constituency as their preferred site for their Gigafactory, although I was later disappointed when they decided to shift that priority elsewhere, possibly because of the lack of capacity or expertise within the Welsh government in order to serve their needs, bringing such a large, major investment project to Wales. Does my Right Honourable Friend agree that his department needs to play an active role in coordinating such large, complicated investment projects to the UK wherever they may be in any nation within the UK so that my constituency won't necessarily lose out as it has now? Rt Hon Kwasi Kwarteng MP [00:12:17] I think there are huge opportunities in Wales for a sighting of Gigafactories and also particularly in terms of the net-zero challenge. I was just speaking to Ken Skates this morning of the Welsh government. I think there's a huge appetite in Wales to drive the net-zero agenda. And I'm very happy to have a conversation with him, how best we can work together to do that. Margaret Greenwood MP (Wirral West, Labour) [00:12:44] Thank you, Mr Speaker. I've listened very carefully to the minister's responses with regards to the Vauxhall Ellesmere Port plant, but I am sure that my constituents who work there would really like some details from the minister. So could he provide us with some details about the actions that he will take to secure the future of their jobs and the thousands of jobs in the local supply chain? Rt Hon Kwasi Kwarteng MP [00:13:10] I'm fully aware and conscious of the difficult time that we're going through. But she will appreciate that these are ongoing conversations. These are ongoing, sensitive negotiations. And I'm not going to be prepared on the floor of this House to enter into the details. I think once we've reached a decision, a conclusion, we can then have a full discussion. But I'm very committed to landing the right result in this conversation. Mike Wood MP (Dudley South, Conservative) [00:13:44] JLR are leading the way in committing to an all-electric future, boosting our strong manufacturing base in the West Midlands. So it was disappointing that Labour discounted the West Midlands from their plans. Will my Right Honourable Friend demonstrate his superior judgement by backing the campaign by West Midlands Conservative MPs and our fantastic mayor, Andy Street for a West Midlands Gigafactory so that the West Midlands truly can be the engine for growth. Rt Hon Kwasi Kwarteng MP [00:14:12] I'm not sure whether that was a yes or no question, but yes to his point, I think Andy's doing a great job. I think MPs, my Right Honourable friends, my right honourable and honourable friends in the region are really driving progress in this area. And I'd be very happy to help them and support them in that endeavour. Mick Whitley MP (Birkenhead, Labour) [00:14:35] Thank you, Mr. Speaker. Having spent 27 years on the shop floor of Vauxhall in both the paint shop and as a union convenor, I'm just one of the thousands of people who have benefited from the highly skilled work and training opportunities that the plant has provided over its many decades in operation. By making the necessary investments now, the government would be able to secure vital employment opportunities for generations to come and help make the UK a world leader in the production of electric vehicles. Does the Secretary of State accept that not doing so would undermine this government's commitments to a green recovery and betray the very communities the Prime Minister has promised to help? Rt Hon Kwasi Kwarteng MP [00:15:16] I think the honourable gentleman is quite right, I think levelling up is clearly heart and centre of what this government is trying to do, and we are doing all we can to get the right result for the people of Ellesmere Port and also for the U.K. it's a hugely significant investment. Felicity Buchan MP (Kensington, Conservative) [00:15:33] Thank you, Mr. Speaker. Does my right honourable friend agree that we not only need additional battery capacity, but we also need battery recycling facilities so that we can sustainably reuse these batteries and if necessary, dispose of them? Rt Hon Kwasi Kwarteng MP [00:15:52] My honourable friend is quite right. The UK government is absolutely committed not only to the manufacturing of these critically important batteries but also in terms of recycling. It's a circular economy that we want to see for electric vehicles. And if we attain that, we will surely maximise the economic and environmental opportunities of the transition to zero-emission vehicles. Gavin Newlands MP (Paisley and Renfrewshire North, Scottish National Party) [00:16:22] Thank you so much, Mr Speaker. We welcome any new petrol and diesel cars by 2030, of course, but are dismayed by the absence of UK government strategy to support the industry transition, meaning these business models are under threat more widely. We've had great rhetoric from this government on electric vehicles but the action is lagging. For example, we've seen nothing from the zero-emissions bus fund. So when will a sustainable strategy be developed to support factors like Ellesmere Port not only survive, but thrive? Rt Hon Kwasi Kwarteng MP [00:16:55] We're absolutely committed to that, When I was energy minister, people like the honourable member were saying, when is the energy white paper going to come out? What is the plan? We have a 10 point plan which has been widely accepted and welcomed. We also have an energy white paper that sets out the path and we're developing strategies in terms of how we get to net-zero at a record pace. I think the government is delivering, had a very, very clear direction and the industry broadly has welcomed that. Mr Philip Hollobone MP (Kettering, Conservative) [00:17:27] Electric vehicle batteries are too big, they have a too limited range and take too long to recharge. I welcome the government's £318 million investment into the Faraday battery challenge. Could the secretary of state tell the House how the Faraday battery challenge is going to lead to smaller batteries with a longer range that don't take very long to recharge? Rt Hon Kwasi Kwarteng MP [00:17:53] The Faraday Battery Challenge is a key part of the industrial strategy, which my Right Honourable Friend, the Member for Tunbridge Wells had a key role in implementing. I think it's made extraordinary progress in the last two or three years. I'll be very happy to pick this issue up with him. And I think over the next 10 years, we're going to see a complete transformation in the battery technology that he talks about. Tanmanjeet Singh Dhesi MP (Slough, Labour) [00:18:22] As a proud electric car owner, I'm glad that to support our automotive manufacturing industry and to boost its competitiveness, Labour has called for an ambitious investment in electric vehicle technology, including the electric battery supply chain, through a £30 billion green economic recovery. So does the secretary of state agree that this strategic investment would support manufacturers like Vauxhall for them to have that long term confidence that they need to build new electric models right here in the UK? Rt Hon Kwasi Kwarteng MP [00:18:59] I agree with a lot of what the honourable gentleman says. What I would say is that there is government investment, which we have, and we're committed to 12 billion pounds through the ten-point plan. But there is, of course, private investment. If we look at the success of offshore wind that was been driven largely by the deployment, the investment of private capital. And this is exactly the same thing that will happen in respect of the net-zero challenge. And that's why we're in conversations with this private company in order to secure that investment. Marco Longhi MP (Dudley North, Conservative) [00:19:37] Thank you, Mr. Speaker, one of the government's priorities is to protect and support jobs and livelihoods across the country as we recover from the pandemic. With Dudley in the black country having a pivotal role in the car manufacturing supply chain, can my right honourable friend confirm that supporting the automotive sector and boosting battery cell manufacturing is an integral part of our plans to build back better and greener from the pandemic? Rt Hon Kwasi Kwarteng MP [00:20:04] My right honourable friend is absolutely right. The Midlands, the black country, his constituency are a key part of this story. I've mentioned the ten-point plan many times. It was only launched in November, three months ago, four months ago. And it's really set the path and set the direction in this area. So he's absolutely right. We're 100 per cent committed to success. And I hope that he and his constituents will benefit greatly. I'm sure they will transition to a greener and cleaner economy. Rachel Hopkins MP (Luton South, Labour) [00:20:43] Thank you, Mr. Speaker. Vauxhall has made cars and vans in my constituency of Luton South since 1993, the plant's loyal and efficient workforce and union reps have worked flexibility with the company for many years to maintain production at that site, including the successful Vivaro electric van. The continued and future success of electric vehicle manufacture, including good skilled jobs for my constituents, is not only reliant on battery production and gigafactories, but also on investment in rapid charging infrastructure. So can the Secretary of State confirm the government's commitment to securing investment in this much needed green infrastructure? Rt Hon Kwasi Kwarteng MP [00:21:24] I think the honourable lady is absolutely right, and I'd want to pay tribute, particularly to the hard work of her constituents to make Vivero the vehicles and also they've ensured that the Vauxhall plant in Luton has been a great success. It's exactly because of that, amongst other reasons why we are very keen and keenly committed to making sure Ellesmere Port enjoys equal support and success. Alexander Stafford MP (Rother Valley, Conservative) [00:21:54] Thank you, Mr Speaker. This government has shown a welcome commitment to bringing electric vehicle production to the UK with the benefits of the economy and the environment that entails? I hope we have that in the Rother Valley. But electric vehicle components are different from those of petrol or diesel cars and rare minerals such as cobalt that are mined overseas. What discussion has the Secretary of State held about developing a strategy is also rare minerals in an environmentally sustainable and ethical way, particularly by supporting domestic extraction and imports from our safe, reliable democratic allies. Rt Hon Kwasi Kwarteng MP [00:22:28] I really commend my honourable friend for the question, I think it's one of great importance. As I said in earlier answers, we're absolutely committed to exploring and developing lithium mining here in the U.K. We fully understand the threats or dangers to the supply chain. And he will also appreciate that the Faraday battery challenge, which we've mentioned a number of times, is funding research to reduce our dependency on raw mineral supply and make better use of global resources. And this obviously will involve looking at how we can reduce and replace critical raw materials. Matt Western MP (Warwick and Leamington, Labour) [00:23:15] Thank you, Mr. Speaker. As chair of the all-party Motor Group and also the all-party parliamentary group for electric vehicles, I'm afraid I have to say that the government has been slow to move on this, particularly by comparison to the governments of Germany and to France in attracting investment into battery gigafactories. That as well that the through the pandemic vehicle manufactures have been receiving support, consumer support to encourage sales in those countries. So could I say to the secretary of state that where Liam Byrne is leading the charge to attract government investment, public and private sector investment into a gigafactory in Coventry, does he not see and support that move? Because it would supply both Luton, Ellesmere Port, but also Halewood and the JLR factories in the Midlands. Wouldn't that be a great outcome? Rt Hon Kwasi Kwarteng MP [00:24:08] It would be a great outcome and I'm not going to make a party partisan point about it. I think there are MPs of different political stripes across his region, as we've seen in these questions, who are very, very keen to develop this kind of technology. I'm very happy always to engage with colleagues across the House in order to get the right outcomes. It's not just a question of the honourable member for Birmingham, Hodge Hill. I think his seat is. But there are members across the House in his particular area representing Midland seats with whom I'm very happy to engage on this.
Chris Elmore MP
(Ogmore, Labour) [00:25:13] The secretary of state has had lots
of bids today from various members across the House of all
parties in terms of battery development. I think I can go one
better. Mr Speaker, on the 10th of February, the Prime Minister
announced on the floor of the House that Bridgend will be a
world-beating battery development plant, later clarified by
number 10 as perhaps the prime minister misspoke. But can I ask
the Secretary of State whether he would agree to meet with me and
indeed the Member for Bridgend to discuss the options of looking
at a battery plant for Bridgend? My constituents have lost the
JLR contracts with Ford. Ford has now gone, Ineos ran away to
France. So we really do need the UK government to look at
bringing in real investment. |