← Back to House of Commons Debates
Vauxhall at Ellesmere Port and Battery Manufacturing Strategy
01 March 2021
Lead MP
Kwasi Kwarteng
Debate Type
Ministerial Statement
Tags
EconomyTransportBusiness & Trade
Other Contributors: 36
At a Glance
Kwasi Kwarteng raised concerns about vauxhall at ellesmere port and battery manufacturing strategy 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 Business Secretary highlighted the government's commitment to securing jobs and livelihoods at Vauxhall’s Ellesmere Port plant, stating he has held meetings with Vauxhall and its parent company Stellantis. He emphasised ongoing support for the British automotive sector through various initiatives like the £500 million Automotive Transformation Fund and a joint £1.5 billion commitment by the government and industry to develop electric vehicle technology. The minister underlined his dedication to making Britain one of the best locations globally for manufacturing electric vehicles, aiming to secure battery manufacturing within the UK.
Greg Clark
Lab
Islington North
Question
Clark emphasised the strategic importance of electric vehicles and batteries, urging the Secretary of State to commit to ensuring Britain's position as a global leader in manufacturing these vehicles. He pointed out three critical facts about electric vehicles including the need for domestic battery manufacturing capacity within five years.
Minister reply
Kwarteng acknowledged Clark’s points regarding the strategic importance of electric vehicles and the need for concrete action, referencing the Prime Minister’s 10-point plan which aims to support the transition to green technologies.
Lucy Powell
Lab/Co-op
Manchester Central
Question
Powell expressed concern over the uncertainty facing Vauxhall’s Ellesmere Port and other car plants, criticising the government's lack of sectoral support during the pandemic compared to France and Germany. She called for real investment in gigafactories among other green job initiatives.
Minister reply
Kwarteng defended the Prime Minister’s 10-point plan as a world leader on decarbonisation targets, stating that the government is committed to securing jobs at Ellesmere Port and driving the green industrial revolution.
Question
Liddell-Grainger requested support for Gravity site in Somerset as a potential location for manufacturing batteries, stressing its suitability.
Minister reply
Kwarteng expressed willingness to consider the Gravity site and highlighted his previous visit to Hinkley Point C where he saw the excellent work being done.
Stephen Flynn
SNP
Aberdeen South
Question
Commends the right hon. Member for Tunbridge Wells (Greg Clark) for securing an urgent question; questions the success of the Tory Brexit deal and its impact on investment, particularly in Ellesmere Port.
Minister reply
Claims the Brexit deal is a success despite two general elections focused solely on it; Nissan's commitment to Sunderland was made contingent upon this deal. Acknowledges need for faster financial support for vehicle emissions transition.
Mark Pawsey
Con
Question
Highlights the urgency of providing gigafactories and mentions proposals for Coventry airport site, advocating it as a strategic location for electric vehicle manufacturing.
Minister reply
Agrees that this development would place UK at heart of EV manufacturing; committed to securing UK gigafactory capacity but cites multiple factors influencing investment decisions.
Justin Madders
Lab
Ellesmere Port and Bromborough
Question
Raises anxiety among Vauxhall Motors workers due to speculation about the plant's future, urging Government to focus on securing support for the UK automotive sector.
Minister reply
Acknowledges uncertainty faced by workers; Government is committed to gigafactory investment and hopes to reach a satisfactory conclusion regarding continued investment.
John Howell
Con
Question
Asks for support for companies in Culham Science Centre undertaking groundbreaking research in batteries, including aviation.
Minister reply
Supports efforts to drive the net zero agenda and is willing to further discuss these initiatives.
Sarah Olney
Lib Dem
Richmond Park
Question
Proposes cutting VAT on electric vehicles to 5% as a measure to increase demand.
Minister reply
Considers multiple measures including phasing out ICE car production by 2030; supports the proposal.
Andrew Selous
Con
Question
Asks what Government is doing to encourage electric van manufacturing.
Minister reply
Emphasises the importance of driving up EV take-up, including vans, as part of Prime Minister’s 10-point plan.
Sammy Wilson
DUP
East Antrim
Question
Questions impact of phasing out petrol and diesel cars on employment and revenue from fuel duty; questions environmental impact of mining earth metals and affordability for poor families.
Minister reply
Defends the 10-point plan as well-received; suggests opposition to it is minimal.
David Johnston
Con
Question
Welcomes new development by Johnson Matthey in Milton Park supporting transition to electric vehicles and meeting net zero goals.
Minister reply
Views this as an excellent development; willing to visit the site.
Kim Johnson
Lab
Liverpool Riverside
Question
Asks Minister to commit investment in green recovery for automotive sector to protect thousands of jobs at risk due to plant closures.
Minister reply
Commits to making sure those jobs stay; actively negotiating with the company and supporting PM’s 10-point plan.
Mark Jenkinson
Con
Question
Asks about plans for roll-out of vehicle charging points, particularly in rural areas.
Minister reply
Commits £90 million to facilitate larger-scale charge point infrastructure projects; willing to discuss specific support with MP.
Lilian Greenwood
Lab
Nottingham South
Question
Asks how many UK gigafactories will be operational by 2024 and what steps are being taken.
Minister reply
Aims to have at least one gigafactory site before the next election; commits to reaching net zero emissions by 2050.
Jeremy Wright
Con
Kenilworth and Southam
Question
Suggests Coventry airport as an excellent site for a gigafactory, asking the Minister to identify potential occupants early.
Minister reply
Confirms ongoing discussions with local communities about siting gigafactories, including in the midlands.
Question
Asks the Secretary of State to work on alternatives to closure for GKN's Erdington plant and ensure high-value components are manufactured in Britain.
Minister reply
Agrees to meet Jack Dromey and others on Thursday to discuss this critical issue.
Question
Suggests the potential of a gigafactory being built in Cornwall, near lithium deposits identified there.
Minister reply
Confirms willingness to meet Steve Double to discuss Cornwall-related issues and confirms existing government commitments on lithium extraction.
Bill Esterson
Lab
Sefton Central
Question
Asks the Secretary of State to do whatever it takes for Cheshire and Merseyside, particularly Vauxhall at Ellesmere Port.
Minister reply
Confirms ongoing discussions with Vauxhall directly to secure vital investment.
Question
Asks the Secretary of State about support for British businesses harvesting polyhalite nodules from the sea bed.
Minister reply
Commits to exploring opportunities that will support clean technologies, including critical raw materials and polyhalite nodules.
Alison McGovern
Lab
Birkenhead
Question
Asks about discussions with the metro Mayor for Merseyside regarding automotive plans and young people's unemployment.
Minister reply
Confirms upcoming meetings with Steve Rotheram to discuss Ellesmere Port, HyNet industrial cluster, and decarbonising efforts.
Question
Invites the Secretary of State to visit Redcar and Cleveland for a potential gigafactory site.
Minister reply
Agrees to visit the constituency in the future to look at opportunities for the energy transition.
Question
Requests engagement with all parties involved, including MPs and local councils, regarding Ellesmere Port's Vauxhall plant.
Minister reply
Commits to engaging cross-party and cross-national issues as previous Secretaries of State have done.
Question
Requests active Departmental role in coordinating large investment projects, especially concerning a battery factory in Wales.
Minister reply
Confirms ongoing discussions with Welsh Government and willingness to work together on net zero agenda.
Question
Asks for details about actions taken to secure the future of jobs at Vauxhall's Ellesmere Port plant.
Minister reply
Confirms ongoing sensitive negotiations and commitment to a positive conclusion with the company.
Mike Wood
Con
Kingswinford and South Staffordshire
Question
Encourages support for west midlands gigafactory, led by JLR's commitment to an all-electric future.
Minister reply
Commits to supporting the campaign for a west midlands gigafactory.
Question
Having spent 27 years on the shop floor of Vauxhall in the paint shop and as a union convenor, I am just one of the thousands of people who have benefited from the highly skilled work and training opportunities that the plant has provided over its many decades in operation. By making the necessary investment now, the Government would be able to secure vital employment opportunities for generations to come and help to make the UK a world leader in the production of electric vehicles. Does the Secretary of State accept that not doing so would, frankly, undermine the Government’s commitment to a green recovery and betray the very communities the Prime Minister has promised to level up?
Minister reply
I think the hon. Gentleman is quite right. Levelling up is clearly heart and centre of what the Government are trying to do. We are doing all we can to get the right result for the people of Ellesmere Port and also for the UK. It is a hugely significant investment.
Question
Does my right hon. Friend agree that we not only need additional battery capacity but battery recycling facilities, so we can sustainably re-use the batteries and, if necessary, dispose of them?
Minister reply
My hon. Friend is quite right. The UK Government are absolutely committed not only to the manufacturing of these critically important batteries, but to recycling. We want to see a circular economy for electric vehicles. If we attain that, we will surely maximise the economic and environmental opportunities of the transition to zero emission vehicles.
Question
We of course welcome ending new petrol and diesel car sales by 2030, but we are dismayed by the absence of a UK Government strategy to support the industry to transition, meaning that this factory’s business model is under threat. More widely, we have heard great rhetoric from this Government on electric vehicles, but the action is lagging. For example, we have seen nothing from the £3 billion zero emission bus fund, while the Scottish Government power ahead. When will a sustainable strategy be delivered to support factories like Ellesmere Port to not only survive but thrive?
Minister reply
We are absolutely committed to that. When I was energy Minister, people like the hon. Member were saying, “When is the energy White Paper going to come out? What is the plan?” We have a 10-point plan, which has been widely accepted and welcomed. We also have an energy White Paper that sets out the path and we are developing strategies for how we get to net zero at a record pace. The Government are delivering. We have a very clear direction, and the industry has broadly welcomed that.
Question
Existing electric vehicle batteries are too big, have a too limited range and take too long to recharge. I welcome the Government’s £318 million investment in the Faraday battery challenge. Will the Secretary of State tell the House how the Faraday battery challenge will lead to smaller batteries with a longer range that do not take very long to recharge?
Minister reply
The Faraday battery challenge is a key part of the industrial strategy, which my right hon. Friend the Member for Tunbridge Wells (Greg Clark) had a key role in implementing. It has made extraordinary progress in the past two or three years. I would be very happy to pick this issue up with my hon. Friend. Over the next 10 years, I think we will see a complete transformation in the battery technology he talks about.
Question
As a proud electric car owner, I am glad that to support our automotive manufacturing industry and to boost its competitiveness, Labour has called for an ambitious investment in electric vehicle technology, including the electric battery supply chain, through a £30 billion green economic recovery. Does the Secretary of State agree that that strategic investment would support manufacturers like Vauxhall and give them the long-term confidence they need to build new electric models right here in the UK?
Minister reply
I agree with a lot of what the hon. Gentleman says. What I would say, and how I would slightly re-tilt the emphasis, is that there is Government investment, which we have—and we are committed to £12 billion through the 10-point plan—but also private investment. If we look at the success of offshore wind, we see that it was driven largely by the investment of private capital. Exactly the same thing will happen in respect of the net zero challenge. That is why we are in conversations with the private company to secure that investment.
Question
One of this Government’s priorities is to protect and support jobs and livelihoods across the country as we recover from the pandemic. With Dudley and the Black Country having a pivotal role in the car manufacturing supply chain, will my right hon. Friend confirm that supporting the automotive sector and boosting battery cell manufacturing is an integral part of our plans to build back better and greener from the pandemic?
Minister reply
My hon. Friend is absolutely right. The midlands, the Black Country and his constituency are a key part of this story. I have mentioned the 10-point plan many times. It was launched only in November—four months ago—and it has really set the path and set the direction in this area. He is absolutely right: we are 100% committed to success, and I hope that he and his constituents will benefit greatly—I am sure they will—from the transition to a greener and cleaner economy.
Question
Vauxhall has made cars and vans in my constituency since 1903. The plant’s loyal and efficient workforce and the Unite union reps have worked flexibly with the company over many years to maintain production at that site, including of the successful Vivaro electric van. The continued and future success of electric vehicle manufacture, including good skilled jobs for my constituents, is reliant not only on battery production and gigafactories but on investment in rapid charging infrastructure, so will the Secretary of State confirm the Government’s commitment to securing investment in this much-needed green infrastructure?
Minister reply
The hon. Lady is absolutely right. I pay tribute particularly to the hard work of her constituents to make the Vivaro vehicles; they have ensured that the Vauxhall plant in Luton has been a great success. It is exactly because of that, among other reasons, that we are keenly committed to making sure that Ellesmere Port enjoys equal support and success.
Question
This Government have shown a welcome commitment to bringing electric vehicle production to the UK, with all the benefits to the economy and the environment that that entails, and I hope that we will have that in Rother Valley. However, electric vehicle components are different from those of petrol and diesel cars and include rare minerals, such as cobalt, that are mined overseas. What discussions has the Secretary of State held about developing a strategy for sourcing rare minerals in an environmentally sustainable and ethical way, particularly by supporting domestic extraction and imports from our safe, reliable, democratic allies?
Minister reply
I commend my hon. Friend for that question, which is of great importance. As I have said in earlier answers, we are absolutely committed to exploring and developing lithium mining here in the UK. We fully understand the threats, or dangers, to the supply chain. My hon. Friend will also appreciate that the Faraday battery challenge, which we have mentioned a number of times, is funding research to reduce our dependency on raw mineral supply and make better use of global resources. That obviously will involve looking at how we can reduce and replace critical raw materials.
Question
As chair of the all-party parliamentary motor group and the APPG on electric vehicles, I am afraid I have to say that the Government have been slow to move on this, particularly by comparison with the Governments of Germany and France, in attracting investment in battery gigafactories. In addition, through the pandemic, vehicle manufacturers have received consumer support to encourage sales in those countries. My right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) is leading the charge to attract private sector investment in a gigafactory in Coventry. Does the Secretary of State not see and support that move? It would supply both Luton and Ellesmere Port, but also Halewood and the Jaguar Land Rover factories in the midlands. Would that not be a great outcome?
Minister reply
It would be a great outcome, and I am not going to make a partisan point about it. There are MPs of different political stripes across the hon. Gentleman’s region, as we have seen in these questions, who are very keen to develop this kind of technology. I am always very happy to engage with colleagues across the House in order to get the right outcomes.
Question
Happy St David’s day, Mr Speaker. If you will indulge me, may I thank you on the record for the letter that my wife and I received on the birth of our son, Henry? He was a month old yesterday, and I am pleased to say that he is thriving.
Minister reply
My view is that that issue, which is critical for the United Kingdom, is something on which I am willing and happy to engage with Members across the House of Commons. It is too important an issue for narrowly partisan views, and of course I am happy to meet the hon. Gentleman and discuss opportunities to drive investment to power the net zero transition.
Shadow Comment
Greg Clark
Shadow Comment
The Shadow Business Secretary highlighted the importance of Britain being a leader in vaccine development and electric vehicle manufacturing. He stressed the urgent need to install manufacturing capacity for electric vehicle batteries by 2027, noting that without it, vehicles made in the UK could face tariffs when exported to the EU. Clark called for concrete action between government and industry similar to the successful vaccine rollout approach.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.