The UK Government is falling behind its competitors and needs to urgently create an attractive environment for electric vehicle (EV) battery production in the UK, according to a report by cross-party Committee of MPs.
The UK needs to rapidly increase investment in domestic battery production to help keep up the predicted increase in demand for electric vehicles (EVs) and full-scale grid storage, according to a report from the Faraday Institution.
The committee warned that the UK needed to increase its battery manufacturing capacity. It argued that weak growth in the sector would undermine the UK’s ability to achieve its net zero target. The committee also said there was increased demand for batteries from UK automotive manufacturing, arising from the move towards electric vehicles.
At present, 47% of the projected demand for UK batteries to 2030 remains unaddressed by existing gigafactory development plans. Furthermore, 71% of the demand projected to 2040 has yet to be met.
Simply sign up to the Electric vehicles myFT Digest -- delivered directly to your inbox. The UK risks losing a vital part of its carmaking industry to Europe and the US if it fails to attract battery investment within the next three years, an influential group of MPs warned on Tuesday.
Harnessing power has been at the core of the UK’s industrial success since the Industrial Revolution. Today, the UK is in a global battery race with competitor countries that want to develop their industrial capabilities in the battery sector. China is dominating the race, while the UK lags far behind many of its competitors.