First Report - Batteries for electric vehicle manufacturing

The government stated that the UK Battery Strategy has evaluated demand across various sectors and that existing public funding programmes, alongside broader measures to improve the business environment (like addressing energy prices and grid connections), will strategically support battery manufacturing across all applications. It did not outline specific capacity targets for niche segments.

The government committed to supporting strategically important investments, including into gigafactories, through measures like a new Ministerial Investment Group, Investment Zones (some focused on Advanced Manufacturing with extended funding/tax reliefs), and a £150 million Investment Opportunity Fund.

The government's UK Battery Strategy has identified strategically important industrial capabilities (e.g., cathodes, anodes, recycling) and committed £2 billion in capital and R&D funding until 2030 to unlock strategic investments in the battery supply chain, including midstream processing.

The government states it promotes ESG standards through the Critical Minerals Strategy by leveraging the UK's position in responsible mining finance, ensuring domestic compliance, encouraging global frameworks, and actively collaborating internationally. It also highlights specific funding for recycling and reuse initiatives to support a circular economy.

The government states its Advanced Manufacturing Plan and UK Battery Strategy adopt an integrated approach, capitalising on existing advantages and addressing structural barriers through measures like permanent full expensing for plant and machinery and a Grid Connections Action Plan to accelerate energy infrastructure delivery.

The government has committed to further interventions to provide long-term certainty on energy prices, including extending support for Energy Intensive Industries to battery manufacturers, implementing the British Industry Supercharger, allocating £185 million to the Industrial Energy Transformation Fund, and offering £300 million annually in tax relief via the Climate Change Agreement Scheme until 2033.

The government has provided a forecast of approximately 270,000 jobs in the battery and EV sectors by 2040 and committed £210 million to fund 4,000 PhDs in STEM and AI, along with a £50 million 2-year pilot to stimulate training and address barriers in high-value apprenticeships.

The government committed to publishing an action plan on green skills in 2024 and developing a forum with the National Manufacturing Skills Task Force, while also highlighting existing apprenticeship programmes and training initiatives.

The government highlighted existing support for both emerging and established battery manufacturers and committed to working with public finance institutions and establishing an industry forum with a Call for Evidence to identify market failures and unlock additional investment for advanced manufacturing.

The government committed to enhancing the Office for Investment with increased resources and an improved concierge offer for strategically important investors, supported by a new Ministerial Investment Group, to coordinate support for major projects like gigafactories.

The government is actively strengthening global critical mineral supply chains through various international collaborations, including signing partnerships with multiple countries, participating in multilateral forums, launching a Green Industrial Partnership with Norway, and negotiating an upgraded FTA with South Korea.

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.

The government claims to have set out a clear framework through the Advanced Manufacturing Plan and UK Battery Strategy, including a £4.5 billion package until 2030, tax cuts such as permanent full expensing for capital allowances, and generous R&D tax relief, to de-risk investments and provide a stable business environment.

The government highlighted its existing trade policy successes, including the extension of zero-tariff trade with the EU until 2026 and joining CPTPP, which ensures over 99% of UK goods exports to member states will be eligible for zero tariffs.

The government committed to reviewing offerings from public finance institutions, issuing a Call for Evidence, and establishing an industry forum on access to finance for manufacturers to support commercialisation of new battery technologies.

The government committed to several measures to support R&D, including changes to R&D tax relief to provide an additional £280 million relief per year by 2028-29, and accepting all recommendations from the Independent Review of Spin-outs.

The government affirmed that the UK Battery Strategy already outlines its commitment and framework for developing a globally competitive battery supply chain for both current and future technologies.