Get 40% Off
🎁 Free Gift Friday: Copy Legendary Investors' Portfolios in One ClickCopy for Free

UK faces EV battery gap - MPs

Published 21/11/2023, 08:36
© Reuters UK faces EV battery gap - MPs

Proactive Investors - Britain risks failing to secure enough electric vehicle (EV) battery production capacity to meet domestic demand as competition grows with Europe and the US to attract manufacturers.

That’s according to MPs on the House of Commons business and trade select committee, which noted their concerns in a report on Tuesday.

“The UK is on course to secure barely half of the electric battery capacity needed by the domestic car industry alone,” chair Liam Byrne wrote.

“Unless we fix this fast, we risk the industry simply relocating to Europe or the US, or becoming reliant on imports from China and elsewhere.”

According to the committee, failure to lay out a clear vision for the future British automotive sector and incentivise manufacturers to base themselves in the UK risks the 160,000 jobs already based across the industry.

New funding models for battery start-ups and a long-term plan were needed to attract investment, the MPs said, alongside a “long-term stable business environment”.

The UK has failed to match incentives in the EU and US - such as Joe Biden’s Inflation Reduction Act - and therefore attract investment into EV production.

China-owned AESC currently operates the UK’s only gigafactory where EV batteries are built, with Jaguar Land Rover-owner Tata Motors Limited (NS:TAMO) set to open the second.

Struggles by the likes of start-up Britishvolt, which required rescue out of bankruptcy earlier this year, have highlighted the woes faced by some in setting up in the UK, however.

Read more on Proactive Investors UK

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Disclaimer

Latest comments

Communism-light has neither a carrot nor a stick, and nothing gets done!
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.