What's Happening?
The UK is being urged to take decisive action to secure its future in battery manufacturing, as global competition intensifies. According to a report by Lord Hutton of Furness and Martin Freer, the UK must implement policy and regulatory interventions to support its battery manufacturing strategy. This includes reviewing the Zero Emission Vehicle mandate and providing relief for energy-intensive industries. The report highlights the need for a coordinated national approach to skills development, including apprenticeships and reskilling programs. Despite progress with initiatives like the UK Battery Strategy and gigafactory investments, the report warns that without proactive intervention, the UK risks losing momentum in the global race for leadership
in electric vehicle and battery manufacturing.
Why It's Important?
The urgency for the UK to act on its battery manufacturing strategy is underscored by the global race to lead in electric vehicle and battery production. Countries like the United States, Europe, and Asia are deploying substantial incentives and investment strategies to secure their positions. For the UK, failing to act could result in losing competitive advantage, impacting its automotive industry and economic growth. The report's recommendations aim to ensure the UK remains a viable player in the global market, protecting jobs and fostering innovation. The next 12-18 months are critical for implementing these strategies to avoid tariffs and build domestic capacity.
What's Next?
The UK government is expected to consider the report's recommendations and take action to align its battery manufacturing strategy with market realities. This may involve negotiating with EU partners to defer or phase transition post-2027 rules of origin deadlines. The focus will be on building domestic battery and materials capacity while ensuring relief for energy-intensive industries. The government will need to demonstrate political will and industry focus to turn these ambitions into tangible outcomes, securing the UK's position in the global battery manufacturing landscape.
