Battery Strategy (Science and Technology Committee Report)

Lord Krebs Excerpts

Wednesday 23rd November 2022 Grand Committee

[Lord Krebs (CB)]

My Lords, one advantage of coming near the end of the list is that many of the things one was going to say have already been said by others, and I can summarise by saying “I agree”. However, I start by thanking our chairman, the noble Lord, Lord Patel, for his excellent chairmanship of the committee and reiterate the thanks to our specialist adviser Professor Clare Grey for her advice and guidance.

We were told in our inquiry that the availability of raw materials is one of the main limiting factors for battery manufacture, and the noble Lord, Lord Lilley, has given such an articulate and comprehensive summary of the situation that I do not need to say anything more about it, other than to take just one example from the FT on Monday, an article about graphite, a crystalline form of carbon. Every EV contains 25 kilos of graphite —so quite a lot of it. Demand is predicted to rise threefold in the next four years. The price of graphite has gone up by one-third in the past year, 65% of the world’s graphite is currently mined in China and 85% of the graphite is processed in China, which speaks to the point mentioned by the noble Lord, Lord Mitchell, about dependence on certain countries for supplies.

I want to focus on another aspect of the supply chain, which is the fact that the raw materials often come from countries with poor human rights records and poor environmental standards, so when you step into your EV and drive off, do you think about the fact that the cobalt in the battery may have been mined using child labour in the DRC? Do you think that most of the raw materials in your battery might have contributed to serious pollution of the environment as well as damage to human health? For instance, we were told that in South America the extraction of lithium from brine uses large volumes of water and can lead to contamination of both the aquatic and terrestrial environments.

As has already been mentioned, against this background, we made two recommendations. We asked the Government to produce a critical raw materials strategy in order to plan for future supply issues, and we also asked the Government to set out plans for industrial-scale recycling and to require manufacturers to conduct a full life cycle analysis of the environmental and social impacts of batteries.

As the noble Lord, Lord Patel, and other noble Lords have mentioned, we now have a critical raw materials strategy, but I am told that it is a high-level document without a detailed road map for implementation. Equally, the critical minerals intelligence centre established under the strategy at the British Geological Survey has, I am told by scientists from the BGS, no clear remit, so will the Minister tell us when the road map will be published and when the purpose of the intelligence centre will be defined?

I now turn to recycling, which has already been mentioned by the noble Baroness, Lady Sheehan, and the noble Lord, Lord Teverson. Northvolt, the Swedish battery maker, has said that by 2030 it will have developed three gigafactories with a combined annual output to power more than 2 million electric vehicles and that these factories will obtain half their raw materials from recycling. Will the Minister update us on the UK’s level of ambition for recycling? Does it match that of Northvolt? The Government’s response on this was extremely vague, with reference to an inter- disciplinary circular economy centre funded by UKRI, but no specific targets or dates for recycling.

We also asked the Government to introduce incentives and regulations to speed the transition to more sustainable manufacturing. The European Union proposes to introduce legislation on recycled material in batteries by 2030 and for all batteries sold in EVs in the EU to declare their carbon footprint by 2024. Therefore, I ask the Minister whether the UK intends to use its Brexit freedom to go further and faster than the EU, or use it to lag behind—or are we intending to follow the EU’s requirements?

As many other speakers have said, EVs are undoubtedly crucial for our trajectory towards net zero, but they come with costs as well as benefits—and I have referred to the social and environmental impacts of sourcing the raw materials. I now want to refer briefly to another kind of cost. EVs are typically about 30% heavier than their petrol or diesel equivalents. Furthermore, the most popular models of EV in the UK are nearly all SUVs. The result of this is that our city streets are becoming increasingly populated by large, heavy vehicles. Can the Minister tell us what assessments the Government have made of the consequences of this for, first, damage to road surfaces, especially in urban areas and, secondly, the safety of other drivers, pedestrians and cyclists? Furthermore, as a result of these assessments, are the Government considering following jurisdictions in the US such as Iowa and New York, and countries such as France, all of which have introduced, or are planning to introduce, an extra tariff for vehicles above a certain weight?

In asking these questions, I declare an interest as a daily cyclist in Oxford, where the combination of potholes and tank-like SUVs on the narrow streets presents a serious hazard to those of us who chose a transport method with an even lower environmental footprint than electric vehicles. I look forward to the Minister’s response.