A new cross-party report has warned that the next 12 to 18 months will decide the future of Britain’s giant factories and the wider car industry.
The UK Gigafactory Commission, supported by the Faraday Institute, has published a comprehensive set of recommendations aimed at accelerating battery investment, protecting more than 200,000 automotive jobs and safeguarding the UK’s industrial competitiveness.
Its central message is clear: Without faster and more coordinated government intervention, Britain risks being overtaken by rivals in Europe, the United States and Asia.
Investment window is narrow
Global competition in battery manufacturing is intensifying as countries compete to secure supply chains for electric vehicles and energy storage.
The UK has made progress through initiatives such as the battery strategy, industrial strategy and targeted funding programmes, but the European Commission has concluded that incremental progress is no longer enough.
Chaired by Furness’ former business and defense secretary Lord Hutton, the committee argues that the UK is at a critical inflection point.
Major automakers are now making long-term decisions about where to locate production, and domestic battery supply is becoming a deciding factor.
Without the capacity of new mega-factories, the UK car sector faces reduced exports, weakened energy security and the risk of losing production overseas.
“The UK is at a pivotal time for the car and battery industries. This committee will develop a practical plan to secure new gigafactories to meet original equipment manufacturer (OEM) demand, align them with international investment incentives, and fix long-standing barriers around energy costs, planning and access to the grid,” Lord Hutton commented.
“If the Government acts on these recommendations over the next 12 to 18 months, the UK can protect hundreds of thousands of jobs, restore investor confidence and remain a strong competitor in the global race to manufacture electric vehicles.”
The need for a more interventionist state
The core of the report is to call for a change in the thinking of top government officials. The European Commission is calling on ministers to move from a reactive approach to a mission-driven industrial strategy with clear accountability for delivering large-scale investments.
One of its key proposals is the appointment of a designated cabinet-level minister responsible for securing new gigafactories, EV manufacturing plants, and associated battery supply chains.
This role will be supported by a dedicated Cabinet subcommittee and a small implementation team to break down departmental silos and create a single point of leadership to accelerate negotiations.
Locking in demand to unlock UK gigafactory
This report has a particular focus on securing major global automotive OEMs as demand anchors for future UK gigafactories.
According to the commission, guaranteed demand from OEMs with short-term EV expansion plans is essential to make large-scale battery investments commercially viable.
To achieve this, we recommend senior-level government involvement, customized incentive packages, and rapid availability of pre-approved industrial land.
These measures will enable the UK to compete more effectively with international rivals who offer generous subsidies and ready-to-build locations.
The European Commission will also call for a support package for investors with benchmarks covering subsidies, energy costs and site preparation, allowing for faster and more reliable discussions with battery manufacturers.
Strengthening the domestic supply chain
This report highlights the importance of building resilience across the battery value chain, beyond cell manufacturing.
It calls for increased investment in domestic production of cathode and anode materials, in line with the UK’s Critical Minerals Strategy, to reduce dependence on imports.
Battery recycling is also a priority. Expanding “black mass” processing and advanced material recovery will not only improve sustainability but also strengthen the security of supply for future gigafactories.
Through the expanded Strategic Sites Accelerator, delivering truly shovel-ready sites with grid connections, access to water and pre-secured planning permission has been described as essential to successfully securing investment.
Policy reforms to increase competitiveness
The commission warns that industrial competitiveness depends not only on funding but also on policy certainty. It calls for action to reduce industrial energy costs by extending relief schemes for energy-intensive industries, a key concern for battery manufacturers.
It also recommends adjusting zero-emission vehicle obligations to maintain ambition while avoiding penalties that could hurt growth, and calls on governments to consider flexibility in the 2027 rules of origin deadline, given the UK and EU’s limited capacity to produce battery materials.
Long-lasting skills and innovation
Finally, the report highlights that talent and innovation will underpin the success of the UK Gigafactory. It proposes a high-profile national skills campaign inspired by the Destination Nuclear programme, alongside expanded apprenticeships, curriculum reform and industry-led training.
To keep the UK at the cutting edge, the European Commission is also calling for accelerating the scale-up of next-generation battery technologies such as solid-state batteries and lithium-sulphur, with a focus on ease of manufacture and cost reduction.
Taken together, these recommendations make it clear that while there is still opportunity, time is ticking.
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