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 (NYSE:TTM) 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.