Britain must move quickly to secure new battery manufacturing investment or risk losing its competitive position in the global automotive industry, a cross-party commission warned on Wednesday, setting out a series of recommendations aimed at attracting gigafactory projects, protecting jobs and strengthening the country’s electric vehicle supply chain.
The report, published by the UK Gigafactory Commission with support from the Faraday Institution, said the UK faces a decisive turning point as Europe, the United States and Asia accelerate efforts to attract large-scale battery investment. Without coordinated government action, more than 200,000 jobs linked to the UK automotive sector could be at risk, it said.
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Chaired by John Hutton, the commission called for a more interventionist industrial strategy, arguing that securing long-term competitiveness will require financial incentives, faster planning decisions and closer engagement with industry.
“The UK is at a pivotal moment for its automotive and battery industries,” Hutton said. “If the Government acts on these recommendations in the next 12 to 18 months, the UK can protect hundreds of thousands of jobs, rebuild investor confidence and remain a serious competitor in the global race for electric vehicle manufacturing.”
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At the core of the commission’s proposals is a tripartite model that brings together a major automotive original equipment manufacturer as a demand anchor, a battery cell producer as the gigafactory operator and domestic active-material suppliers to reinforce the wider supply chain. The commission said OEM demand is essential to underpin the long-term viability of gigafactories and should be the government’s foremost priority.
The report also urged the appointment of a named Cabinet minister responsible for securing investment in a new gigafactory, electric vehicle manufacturing and battery materials, supported by a dedicated secretariat and Cabinet sub-committee to provide clear accountability and accelerate decision-making.
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According to Martin Freer, chief executive of the Faraday Institution, the recommendations address gaps that have held back the UK’s battery ambitions. “They identify exactly what has been missing from the UK’s battery strategy – a demand anchor from a major OEM, investor-ready sites with power and planning secured, competitive energy costs, and a coherent approach to building domestic cathode, anode and recycling capacity,” he said.
The commission also called for policy reforms to improve competitiveness, including reducing industrial energy costs, recalibrating the Zero Emission Vehicle mandate to avoid penalising manufacturers, and seeking flexibility on 2027 rules-of-origin requirements as battery material supply remains constrained.
Regional leaders said the findings reinforce the need to act quickly. Richard Parker, mayor of the West Midlands, said the report supports efforts to position the region as a hub for battery manufacturing, citing investment-ready sites in Coventry and Warwickshire.
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The commission’s work builds on existing government initiatives such as the UK Battery Strategy, the Industrial Strategy and programmes including DRIVE35 and the Battery Innovation Programme. It said the next phase must focus on delivery, with fast-tracked sites, competitive incentives and skills development to ensure the UK remains a viable destination for battery and EV manufacturing investment.
