Experts from the UK’s electric vehicle industry have called out for a clear and present policy, alongside private and public collaboration, to ensure a successful energy transition and improve the affordability of EVs while maintaining the positive adoption trajectory in the aftermath of the collapse of Britishvolt.
The UK startup manufacturer of lithium-ion batteries for the automotive industry went into administration on 17 January 2023.
In response to media reports claiming that EV charging is now more expensive than filling up with a tank of petrol or diesel following the incident, Dr Andy Palmer, chairman of European battery cell developer, InoBat argued that mass production of batteries, and therefore EVs, will ultimately drive price points down. “This is why we need domestic battery cell production,” he said.
Fiona Howarth, CEO of Octopus Electric Vehicles drew parallels with the US and noted how the country has “set the bar” with its “Inflation Reduction Act”, securing impressive incentives for local battery production and giving the UK a blueprint on how to attract manufacturers and investors, and create jobs for the longer term.
UK car production declined 9.8% in 2022 according to the Society of Motor Manufacturers and Traders (SMMT). Electric vehicles, however, bucked the trend. Combined volumes of battery EVs, plug-in hybrids and hybrids was up 4.5% year-on-year and represented almost 30.2% of all car production.
Euan McTurk, consultant battery electrochemist at Plug Life Consulting pointed out the expense of public rapid charging and argued that it is driven solely by the wholesale cost of electricity, which in turn is driven by the wholesale cost of gas – but this needn’t be the case. “A simple reform of the electricity market, to decouple the cost of electricity from the cost of gas, would reduce electricity costs by tens upon tens of pence per unit, without requiring a single penny of taxpayer subsidy,” he said. “The UK Government should enact this highly logical win-win to lower the cost of public charging.”
According to the SMMT, the industry is looking for a dedicated framework to position the UK as one of the world’s most competitive locations for advanced automotive manufacturing.
This framework – which has become more important after the Britishvolt setback – must address soaring energy costs and the threat of increasing global protectionism, provide fiscal measures to encourage investment in zero emission technologies and equip the UK’s talented workforce with the right skills to deliver these vehicles.