The UK Government is falling behind its competitors and needs to
urgently create an attractive environment for electric vehicle
(EV) battery production in the UK, according to a report by
cross-party Committee of MPs.
The Batteries for electric vehicles report, published
today, warns that the UK faces a huge ‘gigafactory gap’, with
less battery production capacity than needed for the nation’s
future needs. If not addressed, this could see automotive
production in the UK decline, potentially putting hundreds of
thousands of associated jobs at risk.
Harnessing the UK’s low-carbon energy sources, the report argues
that the Government could become an important centre for
‘midstream’ refining processes for critical materials such as
lithium. Doing so would establish the UK as a frontrunner in
building sustainable and ethical batteries, compared with those
from China and European countries. Currently, China accounts for
78% of the world’s cathode production. China’s dominance over
large parts of the battery supply chain leaves battery makers
exposed should the country choose to restrict exports of battery
materials and components.
The Government informed the Committee that it plans to publish an
Advanced Manufacturing Plan and the Battery Strategy this week.
The UK’s comparative advantage in clean energy and new battery
technology should be leveraged in these plans, the report
concluded.
Other recommendations included better Government backing for
agreements to set up new gigafactories, prioritising them for
infrastructure improvements, and boosting support for domestic
critical mineral mining.
, Chair of the Business and Trade
Committee, said, “Power was at the heart of the industrial
revolution, and it will be at the heart of the green industrial
revolution. But right now, the UK is on course to secure barely
half of the electric battery capacity needed by the domestic car
industry alone. Unless we fix this fast, we risk the industry
simply relocating to Europe or the US or becoming reliant on
imports from China and elsewhere. That imperils 160,000 jobs and
a jewel in the UK’s industrial crown. Now is the time to act.”
“Despite an announcement of a further £2 billion for automotive
sector green investment, we are unlikely to be able to compete
with Brussels, Bideonomics or Bejing when it comes to subsidies.
But we can still take decisive action. We desperately need a
10-year strategy that boosts subsidies, creates secure access to
low-cost power, designates key sites for gigafactories, fixes the
skills gap, delivers tariff-free trade, de-risks access to
critical minerals and offers long-term R&D for the industry.”
“Our competitors have hit the accelerator on battery investment,
and we’ve been left in their wake. The next round of investments
by car makers in their factories will be decided by local battery
manufacturing capacity. Boosting support for gigafactories is not
enough; Government must cultivate a more appealing investment
environment for battery producers before it’s too late. We must
act urgently if we are to safeguard British automotive jobs and
secure this critical industry for the future.”
Also in the report
- The Committee called for the
Government to press the European Union for at least a 3-year
extension of the current rules of origin requirements. New rules
due to go live at the end of the year, would effectively apply
tariffs for electric cars sold in the European
Union
Notes to editors
