Found: Public and Private Capital for the UK Battery Sector , May 2022 13 Q77 [Jeff Pratt] 14 PQ 18521 [Electric

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether she has had discussions with car manufacturers on levels of disruption to supply chains for (a) temperature sensors and (b) other spare parts for electric vehicles since Russia's invasion of Ukraine.

Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)

HMG understands the concerns of the Automotive industry regarding the potential impact of the invasion on its business operations and supply chains worldwide. The Department for Business and Trade ministers regularly meet with sector bodies and auto manufacturers to discuss a variety of automotive related trade issues, including an understanding of any direct and indirect impacts on UK operations.

Question to the Department for Business and Trade:

To ask His Majesty's Government what steps they are taking to mitigate the effects of impending export regulations as a result of the UK's departure from the EU on the manufacturing costs of electric vehicles and their market accessibility in the EU.

Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)

Due to unforeseen shared external shocks, carmakers across Europe have said they cannot meet the UK-EU Trade and Cooperation Agreement’s rules from 2024 and could face tariffs. This is a shared problem and the Government is determined to work with the EU to fix the specific issue faced from 2024. We want to reach a joint solution with the EU, but our priority is to support our automotive sector and we will be considering all scenarios. Government continues to support the UK automotive industry through the Automotive Transformation Fund, facilitating the creation of an internationally competitive UK electric vehicle supply chain.

Question to the Department for Business and Trade:

To ask His Majesty's Government what discussions they have held with manufacturers about providing support for opening electric vehicle factories in Northern Ireland.

Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)

My officials regularly engage with the automotive industry to discuss manufacturing opportunities in the UK, including in Devolved Administrations.

Question to the Department for Business and Trade:

To ask His Majesty's Government what plans they have for phasing cobalt out of electric car production and for supporting the manufacture of high purity spherical graphite in the UK.

Answered by Earl of Minto - Minister of State (Ministry of Defence)

The Government is aware of the social, environmental and supply concerns surrounding the mining of raw materials, including cobalt, for battery electric vehicles. We expect UK companies to adhere fully with UN Guiding Principles on Business and Human Rights, and the FCDO works on strengthening transparency, improving governance, and finding solutions to the complex challenges of extracting cobalt from artisanal mines.

We continue to work with industry via the Automotive Transformation Fund (ATF) and the Faraday Battery Challenge to support the creation of an internationally competitive electric vehicle supply chain in the UK. Anode Active Material is a strategic priority in scope of the ATF, as part of the upstream supply chain for batteries.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, how much funding the UK Government have allocated to the electric car industry between 2023 and 2030.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

In the 2021 Net Zero Strategy, the Government announced £350m for the Automotive Transformation Fund (ATF). This is in addition to the £500m for this programme announced in the 2020 Ten Point Plan.

Government and industry have jointly committed approximately £1.4bn in innovative projects through the Advanced Propulsion Centre (APC), to accelerate the development and commercialisation of strategically important vehicle technologies, strengthening our competitive edge internationally.

In the coming months, after engagement with industry, the Government will build on the APC and ATF to take decisive action to ensure future investment in the manufacturing of zero emission vehicles in the UK.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, how much (a) public and (b) private sector funding for (i) battery and (ii) electric vehicle manufacturing has been announced since July 2022.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

Since July 2022, we have seen Tata Group announce an investment of over £4bn in a UK gigafactory. JLR have also announced plans to accelerate their shift to electric vehicles and have committed to a £15bn investment in their industrial footprint, vehicle programmes, autonomous, AI and digital technologies and people skills. In addition, in the wider electric vehicle manufacturing supply chain, we have seen Johnson Matthey announce an investment of over £60m in Hertfordshire to develop hydrogen technologies, Pensana announce an investment of £145m in a rare Earth metal refinery, and Ford announce a further £150m investment in Halewood to manufacture Electric Drive Units, in addition to their £227m investment announced in October 2021.

Details of our support to companies will be published in due course as part of our regular transparency data.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps she is taking in response to the US Inflation Reduction Act to safeguard UK electric vehicle and battery manufacturing industries; and whether her Department has made an assessment of the potential impact of that Act on the motor industry in the North East.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

As automotive manufacturing is vital in delivering the Government’s agendas including levelling up in regions such as the North East, we are determined to ensure the UK remains one of the best locations in the world for the sector.

The Government continues to work both internationally and domestically to understand and minimise the impacts of the Inflation Reduction Act on British business. Building on existing interventions we will take decisive action in the coming months to ensure future investment in zero emission vehicle manufacturing.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps her Department is taking to support electric vehicle manufacturing.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Automotive Transformation Fund (ATF) aims to support the creation of an internationally competitive electric vehicle supply chain in the UK. The Government continues to work with industry via the ATF to unlock strategic investments in gigafactories, motors and drives, power electronics, and fuel cell systems.

In the coming months, after engagement with industry, the Government will build on the ATF and the long-term Advanced Propulsion Centre R&D programme to take decisive action to ensure future investment in the manufacturing of zero emission vehicles.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps her Department is taking to support electric vehicle manufacturing in the UK.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Automotive Transformation Fund (ATF) aims to support the creation of an internationally competitive electric vehicle supply chain in the UK. The government continues to work with industry via the ATF to unlock strategic investments in gigafactories, motors and drives, power electronics, and fuel cell systems.

In the coming months, after engagement with industry, the government will build on the ATF and the long-term Advanced Propulsion Centre R&D programme to take decisive action to ensure future investment in the manufacturing of zero emission vehicles.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what information her Department holds on the number of electric vehicle manufacturing companies operating in the UK which have an ultimate owner based in (a) the UK and (b) China.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

As one of the best places for automotive manufacturing many of the world's leading companies manufacture or carry out R&D in the UK. This includes Lotus who make electric hypercars at their Hethel plant in Norfolk, and the London Electric Vehicle Company who produce Plug-In Hybrid Electric Vehicles in Coventry. Both are owned by China's Zhejiang Geely Holding Group.

UK owned Wrightbus produce electric buses at their Ballymena plant in Northern Ireland.

Question to the Department for Transport:

To ask the Secretary of State for Transport, what recent discussions he has had with the Secretary of State for Business and Trade on support for the electric car industry.

Answered by Jesse Norman

The Secretary of State for Transport meets regularly with Cabinet colleagues and works with them to ensure that there is a coordinated cross-Whitehall approach to the UK’s commitment to Net Zero by 2050, which includes decarbonising the transport sector.

Question to the Department for Transport:

To ask the Secretary of State for Transport, if he will make an assessment of the implications for his policies of the findings by Cambridge Econometrics in the report The impact of a 2030 ICE phase-out in the UK, published in 2020, that if the UK motor vehicle industry could secure a greater share of the UK domestic market for new vehicles in the context of a 2030 phase-out of internal combustion engines, this could potentially lead to the creation of an additional 63,000 jobs in the UK compared to a 2035 phase-out.

Answered by Richard Holden - Minister without Portfolio (Cabinet Office)

The end of sale of new petrol and diesel cars and vans by 2030, will help the UK meet its climate change obligations. It will improve air quality in our towns and cities, support economic growth, and create new jobs in our industrial heartlands. The 2030 phase out will contribute to increasing the supply of ZEVs to meet increasing demand from UK consumers and will make the UK a more attractive environment for vehicle manufacturers to produce and sell ZEVs. Alongside government support, this will generate new employment opportunities in the BEV supply chain, as well as in the chargepoint and energy industries.

As estimated in the Transport Decarbonisation Plan, the production of all zero emission road transport vehicles has the potential to support up to 72,000 jobs, worth up to £9.7 billion GVA in the year 2050.

We will shortly bring forward a proposed ZEV mandate to support legislative delivery of our phase out commitments. We will consider the potential impact this legislation will have on jobs as part of our Government Response Impact Assessment.

Question to the Department for Transport:

To ask the Secretary of State for Transport, what recent steps his Department has taken to encourage investment in electric vehicle and battery manufacturing in the UK.

Answered by Trudy Harrison

As part of the Government’s Net Zero Strategy, we are allocating a further £350 million for the Automotive Transformation Fund, as part of our up to £1 billion commitment to build an internationally competitive electric vehicle supply chain including gigafactories. This is in addition to the £500m of funding announced as part of the 10 Point Plan. This will help ensure the UK maximises the benefits from the transition to a zero emission vehicle future and support tens of thousands of high-quality green jobs across the UK.

We continue to work closely with investors to progress plans for manufacturing the batteries that we will need for the next generation of electric vehicles here in the UK. The £1bn investment announced by Nissan and Envision AESC to create an electric vehicle (EV) manufacturing hub is a major vote of confidence in the UK. We are delivering on our commitment to transition to a zero-carbon future, secure Gigafactories and ensure we continue our proud legacy of being one of the best locations for competitive, high-quality automotive manufacturing.

Found: UK automotive industry 10 Commons Library Debate Pack , 15 September 2023 Batteries and Electric Vehicles