Source · Select Committees · Business and Trade Committee
Recommendation 13
13
Accepted
Paragraph: 62
Implement an internationally competitive package of long-term support for gigafactories and battery supply chain.
Conclusion
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 must urgently respond to this intensified global competition with an internationally competitive package of long-term support to attract private investment into gigafactories and the wider battery supply chain within the UK.
Government Response Summary
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.
Paragraph Reference:
62
Government Response
Accepted
HM Government
Accepted
A) The UK is a global hub for advanced manufacturing. Supply chains and technology are increasingly globally contested, but we won’t be drawn into a distortive subsidy battle. Our advanced manufacturing strengths are supported by a strong business environment, a world class network of universities and innovation institutions, and a highly skilled workforce. We continue to build on these existing strengths to attract investment into the battery supply chain, as well as other clean and digital manufacturing technologies. B) The Advanced Manufacturing Plan prioritises (a) investing in the long- term future of manufacturing; (b) cooperating internationally and building supply chain resilience; and (c) reducing costs and removing barriers to boost competitiveness. C) As part of the Advanced Manufacturing Plan, we have announced £2 billion of capital and R&D funding to unlock strategic investments in zero emission vehicles, their batteries and supply chain. The Auto2030 programme will build on the work of the Advanced Propulsion Centre and Automotive Transformation Fund, speeding up access to support, simplifying the Government’s investment offer, and ensuring long-term certainty for investors. D) Companies continue to show confidence in the UK, and our approach has already attracted landmark investments in gigafactories and electric vehicle manufacturing, with over £6 billion of UK investment from Nissan, BMW and Tata in recent months. With the support of Government, this includes the recent announcement of a £2 billion Nissan-led investment to produce two new electric vehicles in Sunderland, BMW’s investment of £600 million to build next generation MINI EVs in Oxford, and Tata’s announcement of a £4 billion investment in a new UK gigafactory. E) The UK is also leading the way in the development of batteries for aerospace applications. The Aerospace Technology Institute (ATI) leads a £3.58 billion programme to 2025 jointly funded by the government and industry that supports world-class R&D into sustainable flight innovations. Following last February’s announcement of £113m joint R&D investment with industry in hydrogen and all-electric flight technologies, Vertical Aerospace opened the state-of-the- art Vertical Energy Centre in Bristol – believed to be the UK’s most advanced aerospace battery facility. F) Through the Longer Duration Energy Storage Competition (LODES) Invinity Energy Systems has been awarded £11 million for the VFB LEAD project to build a longer duration, large-scale vanadium flow battery (VFB) that will be deployed at a key node on the National Grid. On top of this, StorTera has developed a sustainable, highly efficient, and highly energy dense lithium sulphur based single liquid flow battery (SLIQ) technology. In Phase 2 of LODES, StorTera will manufacture a prototype SLIQ that utilises a novel cylindrical cell architecture in a modular format to optimise the manufacture, installation, and maintenance of the system.