Expert Insight: The UK's Battery Problem and How to Solve It

Governments across the world are racing to secure leadership in EV and battery manufacturing. Europe, the United States and Asia are deploying substantial incentives and aggressive investment strategies, cutting planning times and lowering energy costs. The UK is in this race – but unless firm and coordinated action is taken, it risks falling behind.

Set against these challenges, however, lies a significant opportunity. Establishing a robust, domestic battery manufacturing ecosystem will create thousands of high-skilled, well-paid jobs, support regional growth and secure the long-term future of the UK’s automotive sector. It offers a route to link industrial competitiveness with net zero ambitions, demonstrating that economic resilience and environmental sustainability can – and must – go hand in hand. 

Gigafactories – large-scale battery manufacturing plants – should be recognised not merely as individual industrial projects, but as elements of strategic national infrastructure. Countries that succeed in co-locating EV manufacturing with gigafactories will determine where future automotive platforms are allocated, where new EV models are built, and which nations retain volume automotive production. In short, decisions taken over the next few years will determine whether the UK remains a serious player in global automotive manufacturing or sees production and investment move offshore.

Against this backdrop, the UK cannot afford a passive “open for business” stance. It needs a more interventionalist mindset: one that combines financial incentives, site readiness and proactive ministerial engagement to prioritise attracting a major global OEM as demand anchor and secure investment in gigafactories and their supply chains. The question is no longer whether government should act, but how quickly and how decisively.

That is why the policy commission on gigafactories – bringing together senior cross-party figures and experts from industry, policy, academia and public service – has set out a clear, practical roadmap in its report, The UK Gigafactory Commission: Britain’s Battery Future. Its recommendations rest on three pillars: proactive government leadership, strengthened domestic capabilities and capacities and targeted policy and regulatory reform. These are not abstract policy ambitions. They are the conditions that global automotive and battery investors now expect as standard. 

Government leadership must be central. Attracting gigafactory investment and securing long-term commitments from automotive manufacturers as a demand anchor requires decisive, top-level engagement. A named Cabinet minister should be given personal accountability for delivering a package of investments in EV, battery and active material manufacturing. That minister, supported by a small but empowered secretariat, should have the authority to convene departments, remove barriers – on grid, planning and skills – and lead senior-level negotiations with prospective investors. 

Capabilities and capacity on the ground are equally critical. Investor-ready sites with pre-secured grid, water and transport infrastructure, coupled with predictable, competitive energy costs, are now a basic requirement if the UK is to compete with rival locations. In parallel, the UK must close persistent supply chain gaps by attracting investment in cathode and anode active materials and recycling, alongside development and scale up of next-generation chemistries. 

Skills must be treated as strategic infrastructure as well. Gigafactories and active materials plans will require a steady pipeline of technicians and engineers. A coordinated national approach to skills – including apprenticeships specific to battery manufacturing, reskilling programmes drawing from adjacent industries and curriculum reform in colleges and universities – will be needed to build the skilled workforce required to be in place at the right scale and time.  

Policy and regulatory interventions must underpin this strategy. The Zero Emission Vehicle mandate should be reviewed to align with market realities. Relief for energy-intensive industries relief must be broadened across the EV and battery supply chain on a predictable, long-term footing. A deferral or phased transition for post-2027 rules of origin deadlines should be pursued with EU partners to protect UK exporters from tariffs while domestic battery and materials capacity is built up. 

There has been significant progress. The UK Battery Strategy, the Modern Industrial Strategy, DRIVE35, the Battery Innovation Programme and recent gigafactory investments in Sunderland and Bridgwater all represent important steps forward. The UK retains strong research and engineering capabilities and an established automotive base. But the Commission’s conclusion is clear: on their own, these initiatives are not yet sufficient to make the UK genuinely competitive. Without more proactive and coordinated intervention, the UK risks losing momentum at a critical time – with global firms committing capital elsewhere. 

The Commission has therefore set out 10 priority recommendations that together provide a coherent roadmap. This represents a significant but achievable agenda. The next 12–18 months will be decisive. What is required is the political will, industry focus and collective resolve to turn ambition into delivery.