Britain’s ambition to become a global leader in electric vehicle batteries is hanging in the balance, according to a new cross-party report that warns the next 12 to 18 months will determine the future of UK gigafactories and the wider automotive industry.
Urgent Government Action Needed
The UK Gigafactory Commission, backed by the Faraday Institution, has released a set of recommendations aimed at accelerating battery investment, protecting more than 200,000 automotive-linked jobs, and safeguarding the UK’s industrial competitiveness. The commission’s central message is clear: without faster, more coordinated government intervention, the UK risks being overtaken by rivals in Europe, the US, and Asia.
A Narrow Window for Investment
The global competition for battery manufacturing is intensifying as countries race to secure supply chains for electric vehicles and energy storage. While the UK has made progress through initiatives like the Battery Strategy, the Industrial Strategy, and targeted funding programs, the commission concludes that incremental progress is no longer enough. Britain is at a critical inflexion point where major automotive manufacturers are deciding where to locate production, and the availability of domestic battery supply is becoming a decisive factor.
Recommendations for Government Intervention
At the heart of the report is a call for a shift in government mindset. The commission urges ministers to move from a reactive approach to a mission-led industrial strategy, with clear accountability for securing major investments. One headline proposal is the appointment of a Cabinet-level minister responsible for securing new gigafactories, EV manufacturing plants, and associated battery supply chains.
Securing Global Automotive Demand
The report emphasizes securing a major global automotive OEM as a demand anchor for future UK gigafactories. Guaranteed demand from an OEM with near-term EV expansion plans is essential to make large-scale battery investment commercially viable. The commission recommends senior-level government engagement, tailored incentive packages, and the rapid availability of pre-approved industrial sites to compete with international rivals offering generous subsidies and ready-to-build locations.
Strengthening the Domestic Battery Supply Chain
Beyond cell manufacturing, the report highlights the importance of building resilience across the battery value chain. It urges greater investment in domestic cathode and anode materials production, aligned with the UK’s Critical Minerals Strategy, to reduce reliance on imports. Battery recycling is also a priority to improve sustainability and strengthen supply security for future gigafactories.
Policy Reform for Competitiveness
The commission warns that industrial competitiveness depends as much on policy certainty as on funding. It calls for actions to reduce industrial energy costs, a key concern for battery manufacturers, and recommends adjustments to the Zero Emission Vehicle mandate to maintain ambition without deterring growth. The government is also encouraged to seek flexibility on the 2027 Rules of Origin deadline, given limited UK and EU capacity in battery materials.
Skills and Innovation for the Long Term
The report stresses that people and innovation will underpin the success of UK gigafactories. It proposes a national skills campaign, alongside expanded apprenticeships, curriculum reform, and industry-led training. To keep the UK at the cutting edge, the commission also calls for faster scale-up of next-generation battery technologies such as solid-state and lithium-sulphur, with a focus on manufacturability and cost reduction.
