Select committee: Business, Innovation, Science and Trade Committee

Recommendation 15

First Report - Batteries for electric vehicle manufacturing Published 21 Nov 2023 Paragraph 66 Addressed to Department for Business and Trade
Recommendation (the committee's words)
The absence of a clear and visible industrial strategy for the UK’s automotive sector had deterred investment in the UK. The forthcoming publication of the Government’s Advanced Manufacturing Plan and UK Battery Strategy should help to address that lack of investment. The Government should adopt an integrated approach, with measures to develop industrial capabilities across the battery value chain and to collaborate internationally with friends and partners with rich sources of battery minerals. The Advanced Manufacturing Plan and UK Battery Strategy must set out how the Government plans to capitalise on the UK’s sources of competitive advantage and also to address structural barriers that are deterring investment in the UK’s battery supply chain.

From: Business, Innovation, Science and Trade Committee, First Report - Batteries for electric vehicle manufacturing (HC 196), paragraph 66, 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".

Read the government's response ↗ Report an error