Select committee: Business, Innovation, Science and Trade Committee

Recommendation 18

First Report - Batteries for electric vehicle manufacturing Published 21 Nov 2023 Paragraph 76 Addressed to Department for Business and Trade
Recommendation (the committee's words)
The UK faces skills shortages across the battery supply chain. The Advanced Manufacturing Plan and UK Battery Strategy should set out: a) the forecast labour market involved in reaching its targets for UK-supplied batteries b) the forecast training cost for this workforce; and c) how they plan to train and reskill professionals in the automotive sector to support domestic production of electric vehicles, batteries and other processes in the battery supply chain, including through devolution of the requisite training budgets to local areas.

From: Business, Innovation, Science and Trade Committee, First Report - Batteries for electric vehicle manufacturing (HC 196), paragraph 76, 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