Batteries for electric vehicle manufacturing

Business and Trade Committee Closed Inquiry
Opened: 17 Jan 2023 Closed: 24 May 2024 Parliament page
The Committee has launched this inquiry into the supply of batteries for electric vehicle manufacture in the UK, and the viability of battery manufacturing for electric vehicles in the UK. The industry has recently suffered a series of setbacks, including the Government-championed battery start-up Britishvolt which entered administration in January … Read more
13 Recommendations
10 Conclusions
1 Report
3 Oral sessions
2 Letters
3 Events
Activity timeline 10 events
14 Feb
2024
Report published
21 Nov
2023
Report published
24 Oct
2023
Correspondence
12 Sep
2023
Oral evidence
12 Sep
2023
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
30 Aug
2023
Correspondence
23 May
2023
Oral evidence
23 May
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
9 May
2023
Oral evidence
9 May
2023
Formal meeting (oral evidence session) · Room 5, Palace of Westminster
Oral evidence sessions 3 sessions
12 Sep 2023
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Edmund Ward · Department for Energy Security and Net Zero Fred Perry · Department for Business and Trade Ms Nusrat Ghani MP · Department for Business and Trade
23 May 2023
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Andy Palmer David Wong · Society of Motor Manufacturers and Traders (SMMT) Jeff Pratt · UK Battery Industrialisation Centre Konstanze Scharring · Society of Motor Manufacturers and Traders (SMMT)
9 May 2023
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Alan Hollis · AMTE Power plc Ian Constance · Advanced Propulsion Centre UK Jeff Townsend · Critical Minerals Association Jeremy Wrathall · Cornish Lithium Limited Paul Lusty · UK Critical Minerals Intelligence Centre Simon Moores · Benchmark Mineral Intelligence Stephen Gifford · The Faraday Institution
Title HC No. Published Items Response
First Report - Batteries for electric vehicle manufacturing HC 196 21 Nov 2023 23 Responded
Recommendations & Conclusions
17 results
Clear
2 Recommendation Accepted
First Report - Batteries for elect…
Outline battery manufacturing capacity for niche automotive and support non-automotive suppliers
The UK needs gigafactories that can cater for the diverse array of vehicles, including luxury cars, public transport and commercial vehicles, manufactured in this country. Retaining niche segments of the automotive market in the UK is strategically important, because the … Read more
Government Response
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.
Department for Business and Trade
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3 Conclusion Accepted
First Report - Batteries for elect…
Set out plan to attract established and new battery gigafactory manufacturers to UK
Encouraging a competitive mix of battery manufacturers to locate in the UK will help to build the supply chain while capturing intellectual property from new technologies. The Advanced Manufacturing Plan and UK Battery Strategy must set out how the Government … Read more
Government Response
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.
Department for Business and Trade
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5 Recommendation Accepted
First Report - Batteries for elect…
Designate gigafactory sites as strategically important and grant special economic status
There are limited number of potential gigafactory sites—but we have enough sites in the UK to meet the nation’s needs, including sites in the UK’s key automotive clusters. These sites are strategic national assets and should be treated as such. … Read more
Government Response
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.
Department for Business and Trade
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6 Conclusion Accepted
First Report - Batteries for elect…
Establish a single project office, led by DBT, to coordinate gigafactory support.
Building a gigafactory will require support from central Government Departments, local authorities and private companies such as National Grid. The transaction cost of co-ordinating between these bodies should not fall on investors. A single project office integrating the full panoply … Read more
Government Response
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.
Department for Business and Trade
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9 Recommendation Accepted
First Report - Batteries for elect…
Specify strategically critical industrial capabilities to onshore within the UK battery supply chain.
It is not feasible or desirable to onshore the end-to-end battery supply chain. The UK cannot have a self-sufficient supply of lithium-ion batteries and will continue to rely to some degree on imports of raw minerals, materials and components. However, … Read more
Government Response
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.
Department for Business and Trade
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10 Conclusion Accepted
First Report - Batteries for elect…
UK dependence on China-concentrated global battery supply chains poses significant strategic risks.
Global battery supply chains, and especially the upstream supply of critical minerals, have environmental, social and governance challenges. Those supply chains are concentrated in China. The UK’s dependence on those supply chains poses risks to the UK and to the … Read more
Government Response
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.
Department for Business and Trade
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11 Recommendation Accepted
First Report - Batteries for elect…
Detail how the UK Battery Strategy will promote robust ESG standards across the battery industry.
The UK Battery Strategy should set out how the Government plans to promote robust environmental, social and governance standards across the battery industry domestically and globally to promote transparency and a green and clean battery supply.
Government Response
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.
Department for Business and Trade
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13 Conclusion Accepted
First Report - Batteries for elect…
Implement an internationally competitive package of long-term support for gigafactories and battery supply chain.
Global competition for the electric vehicle supply chain has intensified following the passing of the Inflation Reduction Act in the United States. The Inflation Reduction Act has seen investment flow into the electric vehicle supply chain, especially gigafactories, in the … Read more
Government Response
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.
Department for Business and Trade
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14 Conclusion Accepted
First Report - Batteries for elect…
Provide a long-term stable business environment to de-risk investments in the UK battery supply chain.
The UK is competing against other large markets that are offering large subsidies to boost domestic production of electric vehicles and batteries and onshore businesses in the supply chain. The UK Government does not necessarily need to match the scale … Read more
Government Response
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.
Department for Business and Trade
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15 Recommendation Accepted
First Report - Batteries for elect…
Adopt an integrated approach to develop industrial capabilities across the battery value chain.
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 … Read more
Government Response
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.
Department for Business and Trade
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17 Recommendation Accepted
First Report - Batteries for elect…
Set out interventions to provide investors with long-term certainty on competitive UK energy prices.
High energy prices in the UK are deterring investment in the battery supply chain. The Government has taken steps to support energy-intensive industries. However, investors still need more certainty that UK energy prices will remain internationally competitive. The Advanced Manufacturing … Read more
Government Response
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.
Department for Business and Trade
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18 Recommendation Accepted
First Report - Batteries for elect…
Set out forecast labour market, training costs, and plans to reskill automotive sector professionals.
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 … Read more
Government Response
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.
Department for Business and Trade
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19 Recommendation Accepted
First Report - Batteries for elect…
Ensure adequate funding for local training programmes and make business support conditional on upskilling employees.
The Government should ensure that mayoral combined authorities or local councils— especially those that govern strategically important sites where gigafactories could be built—have adequate and flexible funding to tailor support local training programmes. Offers of financial support to businesses in … Read more
Government Response
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.
Department for Business and Trade
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20 Conclusion Accepted
First Report - Batteries for elect…
Secure tariff-free global market access for UK-manufactured electric vehicles and batteries.
The UK Government’s trade policy should aim to secure tariff-free access to global markets for electric vehicles and batteries manufactured in the UK. (Paragraph 79) Commercialising the next generation of battery technologies
Government Response
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.
Department for Business and Trade
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21 Conclusion Accepted
First Report - Batteries for elect…
Set out how to commercialise new UK battery technologies with competitive advantages domestically.
The UK has potential competitive advantages in new battery technologies. However, despite excelling in innovation, it struggles to ensure that new technologies developed in the UK are commercialised domestically. The UK Battery Strategy must set out how the Government plans … Read more
Government Response
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.
Department for Business and Trade
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22 Conclusion Accepted
First Report - Batteries for elect…
Include long-term support for research and development of new UK battery technologies.
The UK Battery Strategy should include long-term support for research and development of new battery technologies in the UK to ensure the UK remains at the cutting-edge of battery technologies.
Government Response
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.
Department for Business and Trade
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23 Conclusion Accepted
First Report - Batteries for elect…
UK must establish its lithium-ion battery industry before leapfrogging to new technologies.
The UK may not be able to simply leapfrog into new technologies without first establishing itself in the lithium-ion battery industry. That conclusion reinforces the importance of acting at pace now to develop a battery supply chain in the UK. … Read more
Government Response
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.
Department for Business and Trade
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Government Response AI assessment · 23 of 13 classified
Accepted 17
Accepted in Part 1
Acknowledged 1
Deferred 1
Rejected 3
Total 13 recs + 10 conclusions
Correspondence 2 letters
24 Oct 2023 To committee Letter from the Minister for Industry and Economic Security relating to Tata Group battery investment, 13 October 2023
Parliament page
30 Aug 2023 To committee Letter from the Chair to the Secretary of State for Business and Trade regarding the Tata Group gigafactory investment, 29 August 2023
Parliament page