Cross-party UK Gigafactory Commission publishes extensive report with recommendations to strengthen supply chain
The UK faces a supply gap in batteries that threatens to leave car manufacturers, ‘dependent on imports, exposed to higher costs and at risk of lost competitiveness.’ That’s the conclusion of the UK Gigafactory Commission, a cross-party group established assess the UK’s current position and make recommendations.
Photo by Vardan Papikyan / Unsplash
The result is a comprehensive new report, Britain’s Battery Future.
According to the report, the automotive section in the UK employs more than 800,000 people and contributes some £22bn to the economy in value-added output. Yet UK production has fallen by more than a third in the past 10 years, as a result of investment moving to other countries which can offer cheaper energy, faster permitting and bigger incentives.
Another issue is that the EU’s new ‘rules of origin’ (RoO) scheme and recycled contents requirements are expected to mean sizeable tariffs for UK exporters. That is, unless a domestic supply chain can be established through gigafactory production of batteries here in the UK.
Chaired by Lord Hutton of Furness, former Secretary of State for Business, Enterprise and Regulatory Reform, the commission brought parliamentarians together with industry experts to make recommendations.
The resulting report suggests a tripartite approach to strengthen the supply chain, by bringing together a leading original equipment manufacturer (OEM) as ‘demand anchor’ with a cell manufacturer as plant operator and an active material producer.
In addition, it calls for investor-ready sites, competitive energy costs and targeted incentives comparable with international competition. There is also a need, says the report, for increased UK capability in cathodes, anodes and battery recycling, alongside next-generation chemistries.
What’s more, there’s a proactive role for government in all this, with a need for clear accountability for securing gigafactory, EV and supply chain investment. Finally, the report recommends a co-ordinated national effort to develop the skills and workforce the sector urgently needs.
The companies consulted were: Agratas; Altilium; Automotive Council; BMW; Cornish Lithium; Cummins; Echion; Fortescue; JLR; Leyland DAF; McLaren; Society of Motor Manufacturers & Traders (SMMT); Stellantis; Toyota; and Volklec.
Lord Hutton of Furness, Chair of the UK Gigafactory Commission, says: ‘Batteries are no longer just a tech issue or an energy issue – they are a national strategic imperative. The UK cannot afford to remain dependent on foreign supply chains for such a vital component of our economic and energy future.’
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