Select Committee · Business and Trade Committee

Batteries for electric vehicle manufacturing

Status: Closed Opened: 17 Jan 2023 Closed: 24 May 2024 13 recommendations 10 conclusions 1 report

The Committee has launched this inquiry into the supply of batteries for electric vehicle manufacture in the UK, and the viability of battery manufacturing for electric vehicles in the UK. The industry has recently suffered a series of setbacks, including the Government-championed battery start-up Britishvolt which entered administration in January 2022. The Committee is interested …

Reports

1 report

Title	HC No.	Published	Items	Response
First Report - Batteries for electric vehicle manufacturing	HC 196	21 Nov 2023	23	Responded

Recommendations & Conclusions

3 items

1 Recommendation First Report - Batteries for electric v… Rejected

Specify domestic supply targets for UK battery demand by 2030 and 2040, including scaling-up plan

In the forthcoming UK Battery Strategy, the Government should specify the extent to which future demand for batteries in the UK should be supplied by domestic sources in 2030 and 2040, along with a 10-year plan for scaling-up this capacity and an estimate of the public money required to do …

Government response. The government rejected setting fixed targets for domestic battery manufacturing capacity or committing to a specific 10-year scaling plan with estimated public funding, stating that the UK Battery Strategy will remain flexible to global markets and not enter a subsidy …

Department for Business and Trade

4 Recommendation First Report - Batteries for electric v… Rejected

Facilitate offtake agreements between OEMs and battery manufacturers for gigafactory funding

Having secure orders from an anchor customer is critical if battery manufacturers are going to raise sufficient funds to build a gigafactory. Offtake agreements between OEMs and battery manufacturers help signal to investors that there is demand for their product. The Advanced Manufacturing Plan and UK Battery Strategy should set …

Government response. The government rejected the recommendation to facilitate offtake agreements between OEMs and battery manufacturers, stating that such agreements are a matter for commercial parties, while noting ongoing support for investors and general improvements to the business environment.

Department for Business and Trade

16 Recommendation First Report - Batteries for electric v… Rejected

Conduct and publish a benchmarking review of UK battery industry financial support against competitor countries.

The Automotive Transformation Fund has helped to unlock private investment into the UK, including in gigafactories and businesses further up the supply chain. However, now global competition has intensified, the UK Government needs to ensure that financial support on offer in the UK is internationally competitive. The Government should conduct …

Government response. The government rejected the recommendation to conduct a benchmarking review of financial support, stating it prioritizes comparative advantage over engaging in 'costly subsidy wars' and is already using existing public funding strategically, citing recent major investments as evidence of the …

Department for Business and Trade

Oral evidence sessions

3 sessions

Date	Witnesses
12 Sep 2023	Edmund Ward · Department for Energy Security and Net Zero, Fred Perry · Department for Business and Trade, Ms Nusrat Ghani MP · Department for Business and Trade	View ↗
23 May 2023	Andy Palmer, David Wong · Society of Motor Manufacturers and Traders (SMMT), Jeff Pratt · UK Battery Industrialisation Centre, Konstanze Scharring · Society of Motor Manufacturers and Traders (SMMT)	View ↗
9 May 2023	Alan Hollis · AMTE Power plc, Ian Constance · Advanced Propulsion Centre UK, Jeff Townsend · Critical Minerals Association, Jeremy Wrathall · Cornish Lithium Limited, Paul Lusty · UK Critical Minerals Intelligence Centre, Simon Moores · Benchmark Mineral Intelligence, Stephen Gifford · The Faraday Institution	View ↗

Correspondence

2 letters

Date	Direction	Title
24 Oct 2023	To cttee	Letter from the Minister for Industry and Economic Security relating to Tata Gr…
30 Aug 2023	To cttee	Letter from the Chair to the Secretary of State for Business and Trade regardin…