Britain’s Battery Future Report

Lord Fox Excerpts

Monday 13th April 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

My noble friend is absolutely right to highlight the role of the south-west. Last week, the Secretary of State announced during a visit to Agratas in Somerset a £380 million government grant, which will support the construction of one of Europe’s largest gigafactories, notably built using 100% British steel. But if I get the chance, I would very much like to take up his suggestion.

[Lord Fox (LD)]

My Lords, notwithstanding the developments that the Minister just spoke of and her Answer to my noble friend’s Question, it is clear that significant elements of battery vehicles will not be made in this country in time for the 2027 review of the rules of origin requirements, nor will they be there to meet the “Made in Europe” requirements which are likely to come in. Can the Minister tell your Lordships’ House what the Government are doing in advance of those negotiations to make sure that British electric cars will be able to be sold in the European Union?

[Baroness Lloyd of Effra (Lab)]

The noble Lord is right to highlight the importance of the EU as the largest market for UK-manufactured cars. The EU remains the UK automotive sector’s largest trading partner. We are talking closely with the EU on all aspects of regulatory developments in respect of EU battery rules, the EU digital battery passport and the “Made in Europe” content rules, because we want to continue to press the EU to avoid any detrimental impact on the UK and EU’s automotive sectors, given the integrated UK-EU supply chains.