Recommendation 2

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 encourage innovative battery manufacturers into the UK. The UK also has an opportunity to take the lead in supplying forms of transport (rail, maritime, aviation and micro-mobility) and sectors of the economy (e.g. energy storage and military applications), which are expected to see demand for batteries rise, especially from 2030 onwards. To capitalise on these opportunities, the Government should: • outline, in the Advanced Manufacturing Plan, what UK battery manufacturing capacity will be needed to cater for the diverse needs of niche segments of the automotive industry, and by when, together with the measures required to secure this. • support battery manufacturers looking to supply batteries to non-automotive sectors by stimulating demand for batteries in these industries and ensuring government support is available to manufacturers targeting these market segments.