UK government launches EV battery strategy, industry shows mixed reactions

The UK government unveiled an electric vehicle (EV) battery strategy on November 26, outlining how it plans to expand the supply chain in the country, according to a statement.

The UK battery strategy was published alongside the Government’s advanced manufacturing plan, which includes £2 billion in funding for the automotive sector to support the manufacturing and development of zero-emission vehicles (ZEV) until 2030.

The 2030 timeline demonstrates the strategy's general congruence with the energy transition, the UK government said, and it also exhibits a ‘sense of urgency’ in focusing on the entire value chain, from essential minerals mining upstream to refining and processing to EV batteries and utility-scale battery energy storage (BESS).

However, the release has elicited a range of reactions from the industry, from optimism to calls for more concrete action.

“To have a successful green industry the UK needs also to look further mid and upstream to onshore for more sustainable processing of critical minerals like copper and lithium,” Julia Poliscanova, senior director at Transport & Environment (T&E) said in a press release.

“But above all, the UK and the rest of Europe must join forces and form a strategic battery alliance to compete in a fierce global clean tech race,” Poliscanova continued.

Meanwhile, the founder of UK pressure group FairCharge, Quentin Wilson, said that the Government’s announcement on Sunday “may seem odd.”

“This is undoubtedly good news that they realise they need to be much clearer after the much-criticised U-turn from 2030 to 2035,” Wilson said, referring to the recent government decision to push back a 2030 deadline banning the sale of new cars powered by internal combustion engines to 2035.  

“Global investors and industry need to see consistency on battery and supply chain policy but China, the US and Europe are powering ahead with battery investment, so the sums involved in the UK. are rather small,” Wilson added.

“The government’s Advanced Manufacturing Plan, together with a new battery strategy to support the development and production of this critical technology, is essential if the UK is to compete in the face of fierce global competition,” said Mike Hawes, chief executive at the Society of Motor Manufacturers and Traders (SMMT).

Hawes added that these initiatives can only help to attract the investment required to capitalize on the growth opportunities provided by a Net Zero economy.

Jeremy Wrathall, the CEO of UK mining start-up Cornish Lithium stated that the recently released battery strategy is a “major step” ahead for the UK battery and linked Critical Minerals plan.

Meanwhile, concerns about the strategy's emphasis on the EV sector and its potential consequences for startups have been expressed.

To ensure sustained growth and technical development in the sector, James Frith, the head of Volta Energy Technologies' European Operations, emphasised the importance of ongoing collaboration between the government, industry, and investors.

“The additional £50m to support battery industrialisation centres could not come at a better time,” Frith said.

Meanwhile, the transport policy manager at the Assocition for Renewable Energy and Clean Technology (REA), Matthew Adams said: “The Government's ‘Design, Build, Sustain’ methodology is comprehensive and goes some way to addressing many concerns raised around supply chain shortages and access to critical minerals and refinement as well as equipment shortages.”

“This is great news for hard-pressed UK car buyers as these are some of the best-selling cars in Britain and building electric cars and their batteries locally will help make them more affordable,” said Ginny Buckley, founder and CEO of UK consumer website electrifying.com.

“The UK Government can't afford to be complacent and needs to continue to invest into our car industry to enable it to become the world leader it's capable of becoming,” she added.

Meanwhile, the government's goal is for the UK to maintain a thriving battery innovation ecosystem and to become a world leader in sustainable design, manufacturing, and use.

In September EnergyCensus reported that the UK government has set out its plans to move all UK new car sales to BEV by 2035 confirming minimum annual targets for new car sales starting in 2024, while also unveiling a package of incentives aimed at van owners and home charging points.