Source · Select Committees · Business and Trade Committee
First Report - Batteries for electric vehicle manufacturing
Business and Trade Committee
HC 196
Published 21 November 2023
Recommendations
1
Rejected
Para 16
Specify domestic supply targets for UK battery demand by 2030 and 2040, including scaling-up plan
Recommendation
In the forthcoming UK Battery Strategy, the Government should specify the extent to which future demand for batteries in the UK should be supplied by domestic sources in 2030 and 2040, along with a 10-year plan for scaling-up this capacity …
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Government Response Summary
The government rejected setting fixed targets for domestic battery manufacturing capacity or committing to a specific 10-year scaling plan with estimated public funding, stating that the UK Battery Strategy will remain flexible to global markets and not enter a subsidy race.
Department for Business and Trade
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4
Rejected
Para 26
Facilitate offtake agreements between OEMs and battery manufacturers for gigafactory funding
Recommendation
Having secure orders from an anchor customer is critical if battery manufacturers are going to raise sufficient funds to build a gigafactory. Offtake agreements between OEMs and battery manufacturers help signal to investors that there is demand for their product. …
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Government Response Summary
The government rejected the recommendation to facilitate offtake agreements between OEMs and battery manufacturers, stating that such agreements are a matter for commercial parties, while noting ongoing support for investors and general improvements to the business environment.
Department for Business and Trade
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16
Rejected
Para 71
Conduct and publish a benchmarking review of UK battery industry financial support against competitor countries.
Recommendation
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 …
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Government Response Summary
The government rejected the recommendation to conduct a benchmarking review of financial support, stating it prioritizes comparative advantage over engaging in 'costly subsidy wars' and is already using existing public funding strategically, citing recent major investments as evidence of the UK's competitiveness.
Department for Business and Trade
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