Because of their large number, policies for the power battery industry have become complicated. If policy elements are not reasonably designed and configured, certain negative effects might hamper the development of the power battery industry, leading to missed opportunities to guide and regulate the industry.
The plan sets out the steps that the Government will take to ensure the UK is more energy independent, secure, and resilient.184 Battery manufacturing is an energy intensive activity that would face steep industrial electricity prices without Government support.
The government prefers to use environment-side and supply-side policy tools to plan the development of the power battery industry, while demand-side policy tools have a certain traction effect on expanding market demand and improving market mechanisms.
Power batteries are the core of new energy vehicles, especially pure electric vehicles. Owing to the rapid development of the new energy vehicle industry in recent years, the power battery industry has also grown at a fast pace (Andwari et al., 2017).
In addition to annually reducing the amount of subsidy for public and private purchases, these policy adjustments also imposed more stringent technical requirements (e.g., energy density, driving range, etc.) for receiving subsidies in order to promote the development of core battery technologies by the domestic firms (policy aims at low-levels).
Policies covering the sales stage placed maximum emphasis on new energy vehicle subsidies while focusing on the demonstration role of public institution procurement. In the use stage, the most important topic was the construction of charging infrastructure and the environment of new energy vehicles.