Aston University researchers Professor Jun Du and Dr Oleksandr Shepotylo claim that the UK is in a weak position to capitalise on the EV revolution and immediate market opportunities, adding that the opportunity won’t wait for policymakers to catch up.
The UK is currently heavily exposed through its critical dependency on battery imports, with now exceed exports by 10.5 times, according to the report. Germany continues to lead the global market in the value of EV exports, whilst China now leads in terms of the number of EVs exported.
The report claims that the UK's automotive sector faces multiple challenges stemming from technological advancements, socioeconomic transformations and geopolitical intricacies, necessitating the formulation of ‘agile and responsive’ economic policies.
Researchers said that the UK’s departure from the EU amplifies these challenges, particularly in navigating non-tariff measures and rules of origin that exert influence on EV exports.
Short-term concerns within the EV battery supply chains can, researchers said, be attributed to trade policy issues, potentially evolving into medium-term dependencies on battery materials and production.
The report outlines a four-point plan to build UK automotive sector resilience, particularly within the global EV market.
The recommendations target global opportunities in the EV revolution, advocate for optimisation of trade policy, call for investments in EV battery production, emphasise crafting a future-ready industrial strategy and the significance of continuous monitoring of global value chains.
In a statement, Dr Shepotylo said: “The report also shines a light on the level of government intervention in the EU, US and China, as all have coherent industrial strategy that capitalise on the shift to Net Zero, whilst the UK does not, favouring a reactive sticking plaster approach, such as the short term extension of Rules of Origin deadline with the EU.
“Whilst this provides respite to the UK, the risk is that the gap with its competitors widens.”
The report, ‘Powering the Future: Aligning Economic Policy for Automotive Sector Resilience in the face of Critical Material Challenges,’ can be read in full here.
“Our research highlights the weakness of the UK’s current position and outlines the strategic interventions urgently needed to fortify the UK’s interests and navigate the transformative landscape of the electric vehicle revolution,” said Du.
“The implementation of these recommendations can effectively cement the UK’s leadership position in the realm of electric mobility, ensuring enduring growth, competitiveness, and innovation.”
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