Source · Select Committees · Transport Committee

Recommendation 7

7 Rejected Paragraph: 52

The continued focus on battery electric vehicles alone risks failing to meet the UK’s climate...

Recommendation
The continued focus on battery electric vehicles alone risks failing to meet the UK’s climate goals. Demand for more and more range from electric vehicles makes them very heavy and very expensive, tying up precious resources in an energy store that might rarely be used. Distributing those resources across more plug-in hybrid vehicles with smaller battery packs that enable 80 per cent of our journeys to be completed electrically yet retaining extended range using an ICE running on a sustainable fuel might be a better compromise.
Government Response Summary
The government disagrees with the recommendation to focus on plug-in hybrid vehicles instead of battery electric vehicles, arguing that EVs are crucial for meeting net zero targets and have significantly lower GHG emissions. They are investing in battery technology and charging infrastructure.
Paragraph Reference: 52
Government Response Rejected
HM Government Rejected
The Government disagrees with this recommendation. As set out in the response to recommendation 3, ZEVs are crucial to delivering the net zero targets and research shows that EVs significantly lower GHG emissions in comparison to petrol, hydrogen fuel cell and plug-in hybrid vehicles across their lifecycle. However, the Government acknowledges the Committee’s concerns about the trend to bigger batteries and heavier vehicles. Battery costs are likely to have the biggest impact on the affordability of EVs. According to a report by Faraday Institution (2019), the cost of the battery represents up to 40% of the upfront cost of an EV. According to BloombergNEF’s EV Outlook Report 2022, battery costs have fallen by 89% between 2010 and 2021 and are expected to continue to decrease. By 2030, the report suggests the price is expected to have fallen by over 95% from 2010 prices. The Government is supporting the continued development of battery technology through the Faraday Battery Challenge as described, including the efficient use of resource and effective recycling. The Government has also announced up to £1 billion of funding, through the Automotive Transformation Fund, to develop UK supply chains for the large-scale production of EVs and further R&D. It will accelerate mass production of key technologies in the UK through major investments, including in the manufacturing of batteries, along with their component and materials supply chains. In addition to investing in advancing the battery technology, the Government is also supporting the roll-out of on-route charging infrastructure via the Rapid Charging Fund (RCF). This will help give EV drivers confidence that they will be able to rely on rapid charging for longer journeys and therefore to purchase vehicles with smaller batteries. The Committee’s proposal to focus on plug-in hybrids would carry significant risks. It is not clear that it would deliver the necessary overall reductions in use of resources and given the relatively high emissions of plug-in hybrids when used in internal combustion engine mode, it will also not support achievement of the UK’s climate change targets.