Recommendations & Conclusions
17 items
2
Recommendation
First Report - Batteries for electric v…
Accepted
The UK needs gigafactories that can cater for the diverse array of vehicles, including luxury cars, public transport and commercial vehicles, manufactured in this country. Retaining niche segments of the automotive market in the UK is strategically important, because the highly specialised nature of these vehicles provides an opportunity to …
Government response. The government stated that the UK Battery Strategy has evaluated demand across various sectors and that existing public funding programmes, alongside broader measures to improve the business environment (like addressing energy prices and grid connections), will strategically support battery manufacturing …
Department for Business and Trade
3
Conclusion
First Report - Batteries for electric v…
Accepted
Encouraging a competitive mix of battery manufacturers to locate in the UK will help to build the supply chain while capturing intellectual property from new technologies. The Advanced Manufacturing Plan and UK Battery Strategy must set out how the Government plans to attract established battery manufacturers as well as new …
Government response. The government highlighted existing support for both emerging and established battery manufacturers and committed to working with public finance institutions and establishing an industry forum with a Call for Evidence to identify market failures and unlock additional investment for advanced …
Department for Business and Trade
5
Recommendation
First Report - Batteries for electric v…
Accepted
There are limited number of potential gigafactory sites—but we have enough sites in the UK to meet the nation’s needs, including sites in the UK’s key automotive clusters. These sites are strategic national assets and should be treated as such. The Government must designate gigafactory sites as strategically important sites …
Government response. The government committed to supporting strategically important investments, including into gigafactories, through measures like a new Ministerial Investment Group, Investment Zones (some focused on Advanced Manufacturing with extended funding/tax reliefs), and a £150 million Investment Opportunity Fund.
Department for Business and Trade
6
Conclusion
First Report - Batteries for electric v…
Accepted
Building a gigafactory will require support from central Government Departments, local authorities and private companies such as National Grid. The transaction cost of co-ordinating between these bodies should not fall on investors. A single project office integrating the full panoply of public support drawn from the various bodies involved is …
Government response. The government committed to enhancing the Office for Investment with increased resources and an improved concierge offer for strategically important investors, supported by a new Ministerial Investment Group, to coordinate support for major projects like gigafactories.
Department for Business and Trade
9
Recommendation
First Report - Batteries for electric v…
Accepted
It is not feasible or desirable to onshore the end-to-end battery supply chain. The UK cannot have a self-sufficient supply of lithium-ion batteries and will continue to rely to some degree on imports of raw minerals, materials and components. However, building the UK’s industrial capabilities across the battery supply chain, …
Government response. The government's UK Battery Strategy has identified strategically important industrial capabilities (e.g., cathodes, anodes, recycling) and committed £2 billion in capital and R&D funding until 2030 to unlock strategic investments in the battery supply chain, including midstream processing.
Department for Business and Trade
10
Conclusion
First Report - Batteries for electric v…
Accepted
Global battery supply chains, and especially the upstream supply of critical minerals, have environmental, social and governance challenges. Those supply chains are concentrated in China. The UK’s dependence on those supply chains poses risks to the UK and to the Government’s strategic objectives, especially if China were to restrict exports …
Government response. The government is actively strengthening global critical mineral supply chains through various international collaborations, including signing partnerships with multiple countries, participating in multilateral forums, launching a Green Industrial Partnership with Norway, and negotiating an upgraded FTA with South Korea.
Department for Business and Trade
11
Recommendation
First Report - Batteries for electric v…
Accepted
The UK Battery Strategy should set out how the Government plans to promote robust environmental, social and governance standards across the battery industry domestically and globally to promote transparency and a green and clean battery supply.
Government response. The government states it promotes ESG standards through the Critical Minerals Strategy by leveraging the UK's position in responsible mining finance, ensuring domestic compliance, encouraging global frameworks, and actively collaborating internationally. It also highlights specific funding for recycling and reuse …
Department for Business and Trade
13
Conclusion
First Report - Batteries for electric v…
Accepted
Global competition for the electric vehicle supply chain has intensified following the passing of the Inflation Reduction Act in the United States. The Inflation Reduction Act has seen investment flow into the electric vehicle supply chain, especially gigafactories, in the United States at the expense of Europe. The UK Government …
Government response. The government has committed £2 billion of capital and R&D funding through its Auto2030 programme to unlock strategic investments in zero emission vehicles, batteries, and their supply chains, building on existing initiatives and supporting the long-term future of manufacturing.
Department for Business and Trade
14
Conclusion
First Report - Batteries for electric v…
Accepted
The UK is competing against other large markets that are offering large subsidies to boost domestic production of electric vehicles and batteries and onshore businesses in the supply chain. The UK Government does not necessarily need to match the scale of subsidies on offer in these markets if the UK’s …
Government response. The government claims to have set out a clear framework through the Advanced Manufacturing Plan and UK Battery Strategy, including a £4.5 billion package until 2030, tax cuts such as permanent full expensing for capital allowances, and generous R&D tax …
Department for Business and Trade
15
Recommendation
First Report - Batteries for electric v…
Accepted
The absence of a clear and visible industrial strategy for the UK’s automotive sector had deterred investment in the UK. The forthcoming publication of the Government’s Advanced Manufacturing Plan and UK Battery Strategy should help to address that lack of investment. The Government should adopt an integrated approach, with measures …
Government response. The government states its Advanced Manufacturing Plan and UK Battery Strategy adopt an integrated approach, capitalising on existing advantages and addressing structural barriers through measures like permanent full expensing for plant and machinery and a Grid Connections Action Plan to …
Department for Business and Trade
17
Recommendation
First Report - Batteries for electric v…
Accepted
High energy prices in the UK are deterring investment in the battery supply chain. The Government has taken steps to support energy-intensive industries. However, investors still need more certainty that UK energy prices will remain internationally competitive. The Advanced Manufacturing Plan and UK Battery Strategy should set out further interventions …
Government response. The government has committed to further interventions to provide long-term certainty on energy prices, including extending support for Energy Intensive Industries to battery manufacturers, implementing the British Industry Supercharger, allocating £185 million to the Industrial Energy Transformation Fund, and offering …
Department for Business and Trade
18
Recommendation
First Report - Batteries for electric v…
Accepted
The UK faces skills shortages across the battery supply chain. The Advanced Manufacturing Plan and UK Battery Strategy should set out: a) the forecast labour market involved in reaching its targets for UK-supplied batteries b) the forecast training cost for this workforce; and c) how they plan to train and …
Government response. The government has provided a forecast of approximately 270,000 jobs in the battery and EV sectors by 2040 and committed £210 million to fund 4,000 PhDs in STEM and AI, along with a £50 million 2-year pilot to stimulate training …
Department for Business and Trade
19
Recommendation
First Report - Batteries for electric v…
Accepted
The Government should ensure that mayoral combined authorities or local councils— especially those that govern strategically important sites where gigafactories could be built—have adequate and flexible funding to tailor support local training programmes. Offers of financial support to businesses in the battery supply chain should be conditional on these companies …
Government response. The government committed to publishing an action plan on green skills in 2024 and developing a forum with the National Manufacturing Skills Task Force, while also highlighting existing apprenticeship programmes and training initiatives.
Department for Business and Trade
20
Conclusion
First Report - Batteries for electric v…
Accepted
The UK Government’s trade policy should aim to secure tariff-free access to global markets for electric vehicles and batteries manufactured in the UK. (Paragraph 79) Commercialising the next generation of battery technologies
Government response. The government highlighted its existing trade policy successes, including the extension of zero-tariff trade with the EU until 2026 and joining CPTPP, which ensures over 99% of UK goods exports to member states will be eligible for zero tariffs.
Department for Business and Trade
21
Conclusion
First Report - Batteries for electric v…
Accepted
The UK has potential competitive advantages in new battery technologies. However, despite excelling in innovation, it struggles to ensure that new technologies developed in the UK are commercialised domestically. The UK Battery Strategy must set out how the Government plans to ensure that new battery technologies, where the UK has …
Government response. The government committed to reviewing offerings from public finance institutions, issuing a Call for Evidence, and establishing an industry forum on access to finance for manufacturers to support commercialisation of new battery technologies.
Department for Business and Trade
22
Conclusion
First Report - Batteries for electric v…
Accepted
The UK Battery Strategy should include long-term support for research and development of new battery technologies in the UK to ensure the UK remains at the cutting-edge of battery technologies.
Government response. The government committed to several measures to support R&D, including changes to R&D tax relief to provide an additional £280 million relief per year by 2028-29, and accepting all recommendations from the Independent Review of Spin-outs.
Department for Business and Trade
23
Conclusion
First Report - Batteries for electric v…
Accepted
The UK may not be able to simply leapfrog into new technologies without first establishing itself in the lithium-ion battery industry. That conclusion reinforces the importance of acting at pace now to develop a battery supply chain in the UK. (Paragraph 87) Batteries for electric vehicle manufacturing 53
Government response. The government affirmed that the UK Battery Strategy already outlines its commitment and framework for developing a globally competitive battery supply chain for both current and future technologies.
Department for Business and Trade