SMMT warns of fierce global competition for EV production
The Society of Motor Manufacturers and Traders (SMMT) has published 'Race to Zero: Powering Up Britain’s EV Supply Chain', a strategy for electric vehicle production in the UK.
The strategy warns that Britain’s ability to compete as an electric vehicle (EV) production leader is at risk unless government responds urgently to increasingly fierce international competition. Other countries have significantly increased political and economic backing for their own automotive sectors, positioning themselves at the front of the queue for investment.
Race to Zero: Powering Up Britain’s EV Supply Chain sets out the UK’s intrinsic strengths in advanced automotive manufacturing, low carbon energy and R&D, but stresses the need for an urgent response to initiatives such as the US $370 billion Inflation Reduction Act and EU Green Deal Industrial Plan. The blueprint sets out a Green Automotive Transformation strategy that would position Britain as one of the world’s most competitive locations for advanced automotive manufacturing, matching its world-leading market ambition to end the sale of non-zero emission cars and vans in 2035.
The strategy identifies investment, regulation and trade as the key pillars to anchor future vehicle production in Britain. De-risking private capital with more competitive incentives and action on energy costs, with support for the next British innovation in batteries and renewables, will stimulate greater investment in EV enterprises. Reform of regulation will accelerate delivery of new production facilities and renewable energy generation. Maximising trade opportunities, meanwhile, would help secure access to essential raw materials. Such moves will secure the essential gigafactories which can underpin EV production.
Mike Hawes, SMMT Chief Executive, said, “Britain boasts a firm foundation of EV production, backed by low carbon energy, outstanding R&D and a highly skilled and productive workforce. We must not squander these advantages. With other parts of the world turbocharging their support for the zero emission vehicle transition, we need to step up to compete in this global race. Every part of the country has a stake in the switch and with fast, decisive action we can deliver for Britain the growth, jobs and green prosperity this country deserves.”