Recommendation 3

HM Government Rejected

The Government disagrees with the recommendation whilst acknowledging the Committee’s concerns about EV costs, charging infrastructure and critical mineral supply. The Government has committed to making the transition to ZEVs affordable for everyone. The Plug in Car Grant was in place for over a decade and was open to all zero emission technologies, provided they met qualifying criteria. This grant successfully supported early market growth of the electric car market, similar growth was not seen in other zero emission vehicle technologies. Government grants are continuing to support the uptake of harder to transition vehicles such as vans and wheelchair accessible vehicles. The price of EVs continues to fall, with some on the used market now similar in price to their petrol and diesel equivalents. Over 267,000 fully electric vehicles were sold in 2022 (as per industry data), and as they come into the used car market the used car market for EVs will have far more choice for motorists. Since last year used battery electric vehicles transactions have risen 57% (according to industry data). Government incentives on infrastructure are now targeted to where they will deliver the most impact and deliver the greatest value for money to the taxpayer. This includes supporting rollout of charging infrastructure to support those without access to charging at home or for those making long distance journeys. The Government is working with the energy industry to plan for future EV uptake and ensure the energy system can meet future demand in an efficient and sustainable way. Total energy demand has been falling since 2000. According to National Grid, the most demand for electricity in recent years in the UK was for 62GW in 2002. Since then, the nation’s peak demand has fallen roughly 16% due to improvements in energy efficiency. High demand at peak hours is a potential concern. However, around 70% of households with a vehicle in England currently have access to private, off-street parking (National Travel Survey, 2020) and majority of those with EVs charge overnight at home during off- peak hours (EV Charging Behaviour Study, Element Energy, 2019). Regarding battery development, the Government is taking a holistic approach to funding innovation in road transport including through the Faraday Battery Challenge (FBC). This is a £541 million programme to support the research, development and scale-up of world-leading battery technology in the UK. The Faraday Institution advises that there are more than sufficient global resources to supply the manufacture of EV batteries to 2050; however, annual global production levels will need to scale up with increased demand. To use global resources better and reduce dependency on raw mineral supply, the FBC is funding research to develop new battery chemistries with reduced percentages of rare materials. They are also funding research to advance battery recycling and reuse to promote a more circular economy. The Government believes that ZEVs are pivotal to delivering net zero obligations. In 2021, the Department for Transport commissioned Ricardo Energy & Environment to produce UK specific lifecycle analysis of GHG emissions from road vehicles. The analysis concluded that during its lifetime (manufacture, use and end-of-life), a typical battery electric car emits 65% less GHG emissions compared to a petrol car. Battery electric cars also emit 43% less lifecycle GHG emissions compared to hydrogen fuel cell cars and 32% less than plug-in hybrids. Latest research from The International Council on Clean Transportation on the ‘use’ of plug-in hybrids would suggest the gap between plug-in hybrids and battery electric vehicles is even wider.