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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 … Show more

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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 … Read more

Government response AI summary
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 race.
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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 … Read more

Government response AI summary
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.
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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 … Read more

Government response AI summary
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 UK's competitiveness.
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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 ↗

Who gave evidence

14 witnesses
WitnessOrganisationSessions
Alan Hollis · Chief Executive AMTE Power plc 1
Andy Palmer — 1
David Wong · Senior Technology and Innovation Manager Society of Motor Manufacturers and Traders (SMMT) 1
Edmund Ward · Deputy Director, Industrial Decarbonisation Department for Energy Security and Net Zero 1
Fred Perry · Director, Advanced Manufacturing Department for Business and Trade 1
Ian Constance · Chief Executive Advanced Propulsion Centre UK 1
Jeff Pratt · Managing Director UK Battery Industrialisation Centre 1
Jeff Townsend · Founder Critical Minerals Association 1
Jeremy Wrathall · Founder and Chief Executive Cornish Lithium Limited 1
Konstanze Scharring · Director of Policy Society of Motor Manufacturers and Traders (SMMT) 1
Ms Nusrat Ghani MP · Minister for Industry and Economic Security Department for Business and Trade 1
Paul Lusty · Director UK Critical Minerals Intelligence Centre 1
Simon Moores · Chief Executive Benchmark Mineral Intelligence 1
Stephen Gifford · Chief Economist The Faraday Institution 1

Correspondence

2 letters
DateDirectionTitle
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…