Battery Strategy (Science and Technology Committee Report)

Lord Mitchell Excerpts

Wednesday 23rd November 2022 Grand Committee

[Lord Mitchell (Lab)]

My Lords, despite the ravages of Covid and the requirement for much of this report to be compiled remotely, the noble Lord, Lord Patel, has done a masterly job in leading us to produce this crucial study. We must thank him for it. We must also thank the team who helped us in crafting this high-quality document, again under the difficult conditions of lock- down. Together we present to your Lordships’ House a report of great depth, which contains strong recommendations. Such a pity, therefore, that the Government have given us such short shrift.

This report was presented to your Lordships’ House in July 2021. In September of that year, we received the Government’s response—a document I can best describe as “thin”. If noble Lords can believe it, the narrative of our report talks about our hopes for COP 26 in Glasgow. Since then, COP 26 has been and gone—and so too has COP 27 in Egypt. Can somebody please explain to me why, as we approach 2023, we are only now debating this report for the very first time? Procrastination does not make for good policy.

Certain themes come from the report that are screaming for government focus. The first is the plea for long-term commitment. Scientists and industry need strong direction. Industry, contemplating massive long-term investments, needs to know the ground rules, and to know that the rules will not change. Individuals looking to their careers, whether as academics or scientists, need to know that the rug is not going to be pulled from under their feet. Sadly, this is not the case. It all feels uncertain and unpredictable.

Another feature that we saw when we were taking evidence, and which has been mentioned today, was the contrast in attitude between Ministers and officials compared with those at the coal face. Ministers were gung-ho about our country’s advances in battery technology; scientists and industrialists were much more cautious. My money is with the experts. Even now, I kick myself for not asking every witness just one question. I should have asked: “Do you believe that net zero by 2050 is going to happen?” Sadly, I asked it only twice. Ministers agreed, of course; those who knew lowered their eyes.

Electric vehicles are not pie in the sky; we see them all around us. Tesla’s market cap exceeds that of every other automobile producer. The Government have set a directive that no petrol or diesel cars will be sold beyond 2029. I think that that is a very positive goal, but the Government need to do their part to ensure that it happens.

All of us know of the panic that we get into when our mobile phones are just about to run out of battery. Electric vehicles evoke an enhanced panic of being stranded. Charging points are key to dispelling vehicle panic. It is forecast that we will need 325,000 charging points by 2032. Can the Minister say whether we are on track to hit that target? I would also like to know what the Government’s plans are for encouraging hydrogen charging points. Few charging points lead to reduced take-up—it is as simple as that.

I turn to the geostrategic challenges posed by battery and fuel cell technology and development. This year we have seen all too clearly our vulnerability to energy blackmail. We simply cannot allow any hostile country to hold us to ransom again. China produces 75% of the world’s batteries. It plans to have 149 gigafactories by 2030. The EU has 19, the US 11 and we have two. It makes us very exposed, and it is a clear demonstration of how China plans to dominate automotive production and electricity storage. As the noble Lord, Lord Naseby, mentioned, according to an upbeat report by Goldman Sachs featured in the FT this week, the US and Europe have the opportunity to become independent of China by 2030. It will require a capital expenditure of $160 billion. That may sound a lot but, it is less than the cost of HS2.

The recent US Inflation Reduction Act is showering vast amounts of money in the US by way of subsidies and tax credits on renewable energy and electric vehicles. As has been mentioned, a South Korean firm has invested $3 billion in a cathode factory in Tennessee. I agree that we need our own equivalent of the IRA in terms of long-term financial commitment, otherwise we will just shuffle along.

As has been mentioned, Britishvolt is a prime example of a tepid government response. Launched with such fanfare only three years ago, it is now on life support in the battery ICU ward. Can the Minister say whether the Government are committed to support Britishvolt at this crucial moment? If they are not, they should be.

Success in modern technologies comes not from slogans and bluster but from hard-nosed, long-term commitment. The successful quest for the Covid-19 vaccine showed that in sharp relief. The title of our report begs two questions. Has our battery strategy gone flat? Is the net-zero target at risk? I think the answers are yes and no. Will the Minister please tell me that I am wrong?