Select committee: Business, Innovation, Science and Trade Committee
Conclusion 13
First Report - Batteries for electric vehicle manufacturing
Published 21 Nov 2023
Paragraph 62
Addressed to Department for Business and Trade
Business, Innovation, Science and Trade Committee Batteries for electric vehicle manufacturing All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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.
From: Business, Innovation, Science and Trade Committee, First Report - Batteries for electric vehicle manufacturing (HC 196), paragraph 62, 21 November 2023
Government response
The government responded to the whole report on 14 February 2024 (deadline 21 January 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response sets out existing and announced support for batteries, while declining fixed supply-chain targets and a subsidy race and leaving offtake agreements to commercial parties.
- On the proposed 90% domestic supply target, the government says the Strategy has not set fixed targets, and that onshoring all aspects of critical mineral supply chains is not "possible (or even desirable)".
- On international competitiveness, it says the UK "won't be drawn into a distortive subsidy battle" and points to £2 billion of capital and R&D funding for zero emission vehicles, batteries and supply chains to 2030.
- On offtake agreements, it says these "remain a matter for the commercial parties involved to negotiate". On Tata's subsidy, it will publish details on the UK Subsidy Database "in due course".
- On battery passports, the response notes the Strategy's points on data and regulation, and commits to Defra consultations in 2024 and a UK Carbon Border Adjustment Mechanism by 2027, with design details "subject to consultation in 2024".