MPs call for urgent EV battery investment incentives

The ‘Batteries for electric vehicle manufacturing’ report, published yesterday (November 21, 2023), warns that the UK faces a huge ‘gigafactory gap’, with insufficient battery production capacity for the nation’s future needs.

The report claims that, 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 could 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 per cent 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 report claims.

In a statement, Liam Byrne, 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.