Select committee: Business, Innovation, Science and Trade Committee
Recommendation 16
First Report - Batteries for electric vehicle manufacturing
Published 21 Nov 2023
Paragraph 71
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 ↗
Recommendation (the committee's words)
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 a benchmarking review to determine how the financial 52 Batteries for electric vehicle manufacturing support on offer compares with that available in competitor countries. It should publish this review and use the findings to inform a new offer of support for the UK’s battery industry in its forthcoming UK Battery Strategy.
From: Business, Innovation, Science and Trade Committee, First Report - Batteries for electric vehicle manufacturing (HC 196), paragraph 71, 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".