{"id":392959,"date":"2022-01-12T12:35:17","date_gmt":"2022-01-12T09:35:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-uk-has-to-step-up-its-ev-battery-production-to-compete-with-the-eu\/"},"modified":"2022-01-12T12:35:17","modified_gmt":"2022-01-12T09:35:17","slug":"the-uk-has-to-step-up-its-ev-battery-production-to-compete-with-the-eu","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-uk-has-to-step-up-its-ev-battery-production-to-compete-with-the-eu\/","title":{"rendered":"#The UK has to step up its EV battery production to compete with the EU"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23d508af50a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23d508af50a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/the-uk-has-to-step-up-its-ev-battery-production-to-compete-with-the-eu\/#A_smoother_journey\" >A smoother journey<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#The UK has to step up its EV battery production to compete with the EU<\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/img-cdn.tnwcdn.com\/image?fit=796%2C417&amp;url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2022%2F01%2FUntitled-design-45-4.jpg&amp;signature=bc598b711c168de8524f881d1bb880b2\" \/><\/p>\n<div>\n                            Car manufacturing in the UK stalled dramatically last year. The head of the industry trade body described the situation as the \u201ctoughest in decades\u201d, and the numbers certainly<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.smmt.co.uk\/vehicle-data\/manufacturing\/\">back up his claim<\/a>.<\/p>\n<p>The latest car registration figures show that 2021 was<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.smmt.co.uk\/2022\/01\/covid-stalls-2021-uk-new-car-market-but-record-ev-sales-show-future-direction\/\">up just 1%<\/a><span>\u00a0<\/span>on a COVID-ravaged 2020 \u2013 and production actually went into reverse gear.<\/p>\n<p>In November 2021, UK car production<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.smmt.co.uk\/vehicle-data\/manufacturing\/\">dropped by almost 29%<\/a>, the fifth consecutive month of output falling, and the worst since the mid-1980s. October\u2019s figures had been the<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bbc.com\/news\/business-59428936\">worst since the 1950s<\/a>.<\/p>\n<p>Overall, car making up to November 2021 was 6.2% below that of 2020, with 797,261 cars made \u2013 worse even than a year in which UK production was so badly affected by factory stoppages caused by the first lockdowns.<\/p>\n<p>This matters not only for the<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.smmt.co.uk\/industry-topics\/uk-automotive\/\">180,000 people<\/a><span>\u00a0<\/span>employed directly in auto manufacturing or the 864,000 jobs across the wider automotive industry. The industry accounts for 13% of total UK export of goods, worth \u00a344 billion, and invests \u00a33 billion each year into automotive research and development.<\/p>\n<p>Nor is this just an issue for the UK. The global<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/theconversation.com\/how-the-world-ran-out-of-semiconductors-156532\">microchip shortage<\/a><span>\u00a0<\/span>had a major impact in 2021, and could cost the global auto industry as much as<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/news\/chip-shortage-expected-to-cost-auto-industry-210-billion-in-2021.html#:%7E:text=The%20semiconductor%20chip%20shortage%20is,according%20to%20consulting%20firm%20AlixPartners\">US$210 billion (\u00a3155 billion) in lost sales<\/a><a><span>\u00a0<\/span>in 2022, with output curtailed by almost 8 million vehicles.<\/a><\/p>\n<p>Of the cars that were made in the UK, over 80% were due to be exported, with most of those (some 60%) bound for the EU. Asia accounted for 15.6% of UK car exports, the US 13.4% and Australia 1.2% (that new<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bbc.com\/news\/business-59690080\">trade deal with Australia<\/a><span>\u00a0<\/span>is welcome but won\u2019t really boost UK car exports much). Overall, exports to the EU fell by 29% compared to the same period in 2020, with more dramatic falls further afield, down by 57% to Japan and by 67% to the US.<\/p>\n<p>Now the chief executive of the Society of Motor Manufacturers and Traders, Mike Hawes, has called for more<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.smmt.co.uk\/2021\/12\/output-falls-28-7-despite-electric-vehicle-boost\/\">support for the industry<\/a>. He also flagged up risks around new customs arrangements between the UK and EU that come into effect from January 1 2022.<\/p>\n<p>He said: \u201cWith an increasingly negative economic backdrop, rising inflation and Covid resurgent home and abroad, the circumstances are the toughest in decades.<\/p>\n<p>\u201cWith output massively down for the past five months and likely to continue, maintaining cashflow, especially in the supply chain, is of vital importance. We have to look to government to provide support measures in the same way it is recognising other COVID-impacted sectors.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_smoother_journey\"><\/span>A smoother journey<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Looking ahead, a<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.smmt.co.uk\/vehicle-data\/production-outlook\/\">new production outlook<\/a><span>\u00a0<\/span>report forecasts that UK car and van production could edge above one million in 2022, and even reach 1.2 million in 2024. Back in 2016,<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ons.gov.uk\/businessindustryandtrade\/manufacturingandproductionindustry\/articles\/theukmotorvehiclemanufacturingindustry2008to2018\/2020-04-16\">the UK produced 1.7 million<\/a><span>\u00a0<\/span>a year. But that now seems a very long time ago, with output damaged ever since by a combination of global markets, Brexit uncertainty, and COVID-related supply chain issues.<\/p>\n<p>Longer term, the auto industry has to deal with the most pronounced change in its history, with a rapid shift now underway towards battery powered electric vehicles. The UK government has set a<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bbc.com\/news\/science-environment-54981425\">2030 deadline<\/a><span>\u00a0<\/span>to phase out the sale of petrol and diesel cars, but policies to actually get there seem half-hearted.<\/p>\n<p>Progress is not helped for example, by the<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.motortrader.com\/motor-trader-news\/automotive-news\/smmt-calls-redoubling-efforts-improve-charging-infrastructure-24-11-2021\">slow speed<\/a><span>\u00a0<\/span>of charging infrastructure roll out, or the big cut in subsidies available for new battery electric vehicles which mean<span>s many do not\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-12-15\/u-k-slashes-ev-subsidies-for-second-time-in-less-than-a-year\">qualify for support<\/a><span>.<\/span><\/p>\n<p>On a positive note, British production of battery electric vehicles and hybrid cars (with a combustion engine and a battery) took a<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.smmt.co.uk\/vehicle-data\/manufacturing\/\">record share<\/a><span>\u00a0<\/span>of production in 2021, accounting for around a third of all cars made in November, and more than a quarter (26%) over the year.<\/p>\n<p>Of those, EV output was up in November by 53% to 10,359 units, hitting a new high of almost 14% of production, more than double the level a year ago. UK-based car makers like Nissan, MINI and the London Electric Vehicle Company produced more than 60,000 zero emission vehicles in 2021.<\/p>\n<p>But UK battery production is<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ukandeu.ac.uk\/battery-production-a-challenge-after-brexit\/\">lagging behind<\/a><span>\u00a0<\/span>major investment across the EU, which is aiming to be independent in battery production by 2026, and has brought together seven countries to form the<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/growth\/industry\/strategy\/industrial-alliances\/european-battery-alliance_en\">European Battery Alliance<\/a>. And while there is confirmed investment in just one battery \u201cgigafactory\u201d in the UK, there are at least 15 under construction in countries including Sweden, France, Germany, Hungary and Poland.<\/p>\n<p>Investment in battery production in the UK will need to be accelerated dramatically given the shift to electric vehicles is now underway. Beyond that,<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.smmt.co.uk\/2021\/11\/redouble-efforts-to-support-electric-vehicle-market-and-automotive-sector-competitiveness-says-smmt-president\/\">better and more joined-up<\/a><span>\u00a0<\/span>support for the auto industry will be needed to get to<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.driving.co.uk\/car-clinic\/advice\/2030-petrol-diesel-car-ban-12-things-need-know\/\">2030<\/a><span>\u00a0<\/span>with a viable mass UK auto industry intact.<\/p>\n<p><em>This article by<span>\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/theconversation.com\/profiles\/david-bailey-109235\">David Bailey<\/a>,<\/span><\/em><em><span> Professor of Business Economics<\/span>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/theconversation.com\/institutions\/university-of-birmingham-1138\"><span>University of Birmingham<\/span><\/a>, is republished from<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/theconversation.com\/\">The Conversation<\/a><span>\u00a0<\/span>under a Creative Commons license. Read the<span>\u00a0<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/theconversation.com\/the-flagging-uk-car-industry-is-moving-too-slowly-on-battery-production-to-compete-on-the-global-market-172888\">original article<\/a>.<\/em>\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/uk-needs-to-step-up-ev-battery-production-to-compete-with-eu-syndication\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#The UK has to step up its EV battery production to compete with the EU&#8221; Car manufacturing in the UK stalled dramatically last year. The head of the industry trade body described the situation as the \u201ctoughest in decades\u201d, and the numbers certainly\u00a0back up his claim. The latest car registration figures show that 2021 was\u00a0up&#8230;<\/p>\n","protected":false},"author":1,"featured_media":392960,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/shift?filter_last=1&fit=1280,640&url=https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2022\/01\/Untitled-design-45-4.jpg&signature=87566f8c551e056f21085cf34d8818e9","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-392959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/392959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=392959"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/392959\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/392960"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=392959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=392959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=392959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}