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Electric Vehicle Battery Production
18 January 2023
Lead MP
Graham Stuart
Debate Type
Ministerial Statement
Tags
EconomyTaxationEmploymentClimateBusiness & Trade
Other Contributors: 26
At a Glance
Graham Stuart raised concerns about electric vehicle battery production in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The collapse of Britishvolt into administration is a regrettable situation, and our thoughts are with the company’s employees and their families. The Government remain committed to the future of the automotive industry through promoting electric vehicle capability via the automotive transformation fund, which required key milestones such as private sector investment commitments from companies receiving support. Despite no ATF funds being disbursed due to Britishvolt's failure to meet conditions, the government continues to take steps towards scaling up the EV industry in the UK with significant investments announced by Nissan and Envision (£1 billion), Stellantis (£100 million) and Ford (£380 million). The automotive sector is vital for levelling up, net zero targets and global Britain's advancement.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
Question
Questions the government’s accountability for Britishvolt failure, raises concerns over its impact on the automotive industry, queries about due diligence investigation results, asks about conversations with other companies to secure the site in Blyth and requests commitment to Labour's plans.
Minister reply
Acknowledges opportunity but emphasises thorough due diligence conducted on Britishvolt. Stresses support for electric and zero-emission vehicles through continued investment in the automotive transformation fund, highlighting progress made since 2010 despite criticism.
Question
Suggests pausing the ban on petrol and diesel vehicle sales until EV manufacturing capacity catches up.
Minister reply
Commits to electric and zero-emission vehicles without removing mandates that drive consumer choice, emphasising further ambitious steps.
Question
Expresses sympathy for those affected by job losses, criticises the levelling-up agenda's failure, inquires about due diligence timing and actions taken upon realising issues, seeks a coherent strategy for battery production and EV manufacturing.
Minister reply
Acknowledges enthusiasm for net zero opportunities but dismisses criticism on industrial intervention from Scottish nationalists regarding shipbuilding enterprises.
Greg Clark
Con
Isle of Wight
Question
As my right hon. Friend pointed out, no cars with internal combustion engines can be sold after 2030, so, if we do not have battery manufacturing in this country, we risk not having car manufacturing in it. Do the Government have a strategy, as they did until 2019, to ensure that we manufacture batteries and cars? In the case of Britishvolt, will they work with the administrators, as they did when British Steel went into administration, to find a buyer who can take it out of administration and into production?
Minister reply
I thank my right hon. Friend for his question. The automotive transformation fund, among others, is designed to support battery manufacturing in the UK. We are committed to ensuring that the automotive sector continues to succeed and will work with potential investors to secure this.
Darren Jones
Lab
Bristol North West
Question
The Americans have announced significant subsidies for industry under the Inflation Reduction Act, and the European Union is responding by streamlining state aid rules and announcing its own subsidies for industry in the European Union. Surely the Minister must recognise that businesses are being attracted to the US and the EU, away from the UK. What is he going to do about it?
Minister reply
The hon. Gentleman is right to highlight some of the pressures from the IRA in the United States and the response from the EU. We will be coming forward with our green finance strategy and our response to the Climate Change Committee, ensuring that we retain our position as a world leader in hydrogen, carbon capture and other industries.
Question
To have secure battery production, we need a secure supply of lithium, so the Business, Energy and Industrial Strategy Committee was very concerned to hear last year that 95% of the world’s current supply of lithium is processed in China. Can the Minister tell the House what the Government will be doing to increase the resilience of the UK’s lithium supply chain both in boosting production at home and in creating partnerships with allies, because we cannot continue this over-reliance on China?
Minister reply
The critical minerals strategy sets out our plans to improve the resilience of supply chains and increase the supply by accelerating the growth of the UK’s capabilities as well as collaborating with international partners.
Ian Lavery
Lab
Blyth and Ashington
Question
On the benefit of clarity and accuracy, the Britishvolt site is in Wansbeck—my constituency. Will the Minister give my constituency some guarantees that the jobs promised with Britishvolt—3,000 plus a further 5,000 in the supply chain—will not be forgotten, and can he say what support he will give to any potential investor to continue a gigafactory project on the site in Cambois in my constituency?
Minister reply
The hon. Gentleman is right that it is a fantastic site, and we will continue to work with investors and encourage them to go in that direction.
Question
From the Minister and his Department’s discussions with potential private sector investors, could he set out what appear to be the missing ingredients that stop them investing more in this company and in the broader supply chain, and what is being done by him and his Department to help fill in and provide those missing ingredients so that we can improve the resilience of the EV supply chain as a whole?
Minister reply
Britishvolt is in the best position to judge what happened with its investors. We set milestones for our funding and were prepared to put in significant British Government support, but it was dependent on Britishvolt fulfilling its business plan.
Wera Hobhouse
Lib Dem
Bath
Question
The collapse of Britishvolt is a huge blow by any measure. Owning and running an electric vehicle will continue to be financially out of reach for many or most UK households, and the lack of enough EV charging infrastructure compounds the problem. I welcome the Minister’s commitment to the mandatory phasing out of petrol and diesel cars, but how can that successfully happen without having a good charging infrastructure, which currently is woefully inadequate?
Minister reply
The Government have prioritised securing investment in battery cell gigafactories. As Members have been right to say, this is key in anchoring the mass manufacture of electric vehicles in the UK, safeguarding jobs and driving emissions to net zero by 2050.
Question
My right hon. Friend is aware that, last month, electric vehicle sales overtook diesel and were one third of all new vehicle sales in the month. There is demand for electric vehicles, and we need to ensure that there is an automotive industry here making them. We have lithium in Cornwall, and members of my Environmental Audit Committee visited the constituency of my hon. Friend the Member for Truro and Falmouth (Cherilyn Mackrory) and saw the lithium mine there. We have natural assets. We have the site that the Minister is interested in and I encourage him to visit it.
Minister reply
I entirely agree with my hon. Friend on the importance of the site, and we are absolutely committed to working with potential investors to ensure that it is developed.
Matt Western
Lab
Warwick and Leamington
Question
The Minister will know that many in the industry have never actually taken Britishvolt as a serious proposition. The fact is that the Advanced Propulsion Centre has forecast that we need 90 GWh to 100 GWh production by 2030; we stand at 2% to 2.5% currently. Without UK battery manufacture, we do not have an automotive manufacturing industry supporting 180,000 employees.
Minister reply
The hon. Gentleman is right to highlight the importance of this and of ensuring that we get policies that put us on track for that kind of transformative change; we are not currently on that track.
Question
I congratulate my right hon. Friend on grasping this difficult nettle. I have the massive Toyota factory in South Derbyshire, and it is hugely important to us that we have these batteries built in the UK—and preferably near me. Would my right hon. Friend kindly agree to a meeting at which we can discuss future international inward investment in that sector?
Minister reply
I am grateful to my hon. Friend and I would be delighted to have that meeting.
Sammy Wilson
DUP
East Antrim
Question
The announcement today is a tragedy for those who have jobs in this company and those who were looking forward to having jobs there in future. It is also a hammer blow to the Government’s levelling up policy.
Minister reply
I thank the right hon. Gentleman for his question and his consistency, but if he looks at energy costs at the moment he will find that it is the sky-high prices of fossil fuels that are causing the problems. There is consensus across the House, of which he is not quite a part, that renewables and the Government policy of building them at scale are bringing the lowest cost energy to the grid.
Jerome Mayhew
Con
Broadland and Fakenham
Question
About 40% of the components of an electric vehicle are contained within the battery. That matters because of the definition of “British made” when we export to the European Union and elsewhere.
Minister reply
My hon. Friend is absolutely right. I am working closely with the Department for International Trade, the Minister with responsibility for investment and others, and I am delighted to have the Minister for Trade Policy here beside me. We are absolutely determined to sell the opportunity of the site to contribute to the wider goals we have discussed, and to ensure local jobs and employment.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
Question
Luton has long been associated with the motor manufacturing industry at the Vauxhall plant in my constituency. Workers there will tell you that their futures are under threat without battery factories.
Minister reply
The hon. Lady is right to highlight the importance of semiconductors to the automotive industry. I hope we will see that coming out as soon as possible.
Question
As an unashamed enthusiast of UK electric vehicle production, there is understandable sadness on all sides of the House that Britishvolt is not proceeding.
Minister reply
My hon. Friend takes a close interest in these issues. He is right that we need to do more and critical minerals are a part of that. A whole series of elements need to come together, as another hon. Friend said, to form that battery and to be the vital component in a successful British automotive manufacturing industry for the future.
Catherine West
Lab
Hornsey and Friern Barnet
Question
Is it not the case that, in this crucial industry, this is just yet another example of the lack of confidence in the UK economy? Part of the reason for that is because there is no strategy.
Minister reply
Opposition Members lose no opportunity to talk down the UK. It is quite extraordinary, especially in the week when we have just seen evidence come out that the UK is seen by global CEOs as the third most attractive place in which to invest.
Question
I declare an interest as chair of the all-party parliamentary group for critical minerals. As others have mentioned, it is vital that we step up not only the domestic supply chain but collaboration with friendly nations such as Australia, Japan, the US, Canada and so on.
Minister reply
I thank my hon. Friend, who is always championing her constituency and its interests, and emphasising the fact that yes, quite rightly, critical minerals are important, and that working with partners and trusted allies is absolutely critical.
Question
Battery production and electric vehicle roll-out counts for nothing if the EV battery charging infrastructure is not adequate. England still lags well behind Scotland in its charging network.
Minister reply
The hon. Gentleman is right to highlight the importance of charging infrastructure. We need to do more and we need to do it faster. We are absolutely focused on delivering that.
James Wild
Con
North West Norfolk
Question
My right hon. Friend rightly protected taxpayers’ money as milestones were not met, but will he confirm to potential investors that the £100 million is still on the table for firms that can get the private sector investment and the orders that Britishvolt was sadly unable to?
Minister reply
In the net zero strategy it was announced that there would be £350 million of funding for the automotive transformation fund, in addition to the £500 million announced as part of the 10-point plan.
Matt Rodda
Lab
Reading Central
Question
This is clearly deeply disappointing news, both for the workforce and the wider UK economy. As we heard earlier, the electrification of vehicles is slipping backwards under this Government’s watch.
Minister reply
In terms of vehicles on the road, as one of my hon. Friends mentioned, we are actually seeing record sales. We are seeing that transformation going ahead.
Question
Clearly, this is unwelcome and sad news. Does my right hon. Friend agree that the Government must keep a constant eye on ensuring that the UK remains an attractive place for new investors?
Minister reply
My hon. Friend would never miss an opportunity to promote Scunthorpe steel, and I applaud that. That is why she is rightly seen as a champion for her constituents, protecting their interests.
Question
I agree with the Minister that this is a most regrettable situation. It is a blow to the automotive sector in the United Kingdom.
Minister reply
We are engaging with the Department for International Trade—as I hope the presence in the Chamber of my right hon. Friend the Minister for Trade Policy indicates—to make that case to investors. We have the green finance strategy, as I say, and our response to the Climate Change Committee and to the judicial review are coming up in the coming weeks.
Question
Last month, I spoke at the launch in London of the Indo-Pacific Net-zero Battery-materials Consortium. This initiative brings together British and far eastern businesses with support from both Governments to secure essential battery materials such as nickel. Some politicians here today have talked about sprouting battery factories in the UK but overlook that they rely on material sources. How is our Government facilitating these dependencies?
Minister reply
My hon. Friend highlights how the trade envoy programme allows Members of this House to gain a deep understanding of other countries, engage with their Governments, and see how engagement can contribute to the success of our own industries, benefiting both parties.
Jim Shannon
DUP
Strangford
Question
Thank you for your answers. How does he intend to secure production of batteries for the industry and ensure future access as we face excessive costs due to reliance on foreign entities? British battery production must be supported. In my constituency of Strangford, there is significant interest in both battery storage and potential production, including Northern Ireland's desire to participate. How can all regions of the United Kingdom play a part in electric battery production?
Minister reply
Thank you for your courteous question. He correctly highlights the importance of Northern Ireland playing its part in the automotive industry as we transition towards zero-emissions vehicles. I look forward to discussing this issue and others later this week when visiting Strangford Lough with him to learn about successful technology.
Shadow Comment
Jonathan Reynolds
Shadow Comment
The shadow minister criticises the government for its failure to support Britishvolt, highlighting it as a symptom of a broader industrial strategy flaw. He questions the government’s due diligence process regarding Britishvolt's plans, seeks updates on UK battery-making capability increase, and urges commitment to Labour's eight new gigafactories proposal across the UK with expanded charging points roll-out.
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