UK must support ‘electric car production to save jobs’

• Shilpa Sharma
• 29 June, 2021

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By: Shilpa Sharma

THE UK government must support electric car production to safeguard around 90,000 jobs in the sector, the Society of Motor Manufacturers and Traders (SMMT) said.

The country needs to set a binding target for building battery factories and install millions more charging points for electric cars, it said.

Industry leaders accused the government for not helping the sector to build a strong capacity for electric vehicles.

The SMMT’s chief executive, Mike Hawes, said that without the right backing, UK businesses would become “consumers not producers, spectators not innovators… lead and we succeed, follow and we fail”.

A spokeswoman for the government said, “We are committed to ensuring the UK continues to be one of the best locations in the world for automotive manufacturing and are dedicated to securing gigafactories to support the auto sector’s transition to electric vehicles,” the BBC reported.

The government is also working with investors and vehicle manufacturers on plans to mass produce batteries in the UK, she said.

She added that the UK already has more than 23,800 public charging points including 4,450 rapid devices – one of the largest networks of rapids in Europe.

According to a report, written for the SMMT by consultants Public First, the shift to electrified vehicles is the biggest challenge faced by the industry, as the government aims to ban cars powered only by petrol and diesel cars by 2030.

Other European governments have also set targets for phasing out conventional vehicles.

The automotive industry contributes £15 billion to the UK economy, and employs around 180,000 people, the report said.

To meet demand for new electric cars, the report says, the government should commit to creating gigafactories – giant battery-building plants – with a capacity of 60 gigawatt hours by 2030.

At present, Envision AESC’s plant in Sunderland is the only British factory that mass produces batteries for electric cars. It has an output of 2 gigawatts per hour, and provides power packs for the Nissan Leaf.

Later this week, Japanese manufacturer Nissan is expected to announce plans for a new Gigafactory to build batteries at its manufacturing base in Sunderland.

Meanwhile, the SMMT’s report recommended setting up at least 2.3 million new charging points by 2030.

It also called for the introduction of a “build back better fund” from the government to support manufacturing jobs and reduce costs, a commitment to develop automated vehicle technology and a review of taxes for the sector.

The influential green group Transport and Environment (T&E) suggested that the UK risked being left behind as other countries invested more rapidly in electric car production.