- The UK government today revealed its new Industrial Strategy, setting out a ten-year plan to increase industrial growth across eight growing sectors, which also covered clean energy and the EV industry.
- Strategies covered within the new brief includes the Advanced Manufacturing Sector Plan, which, among several other sectors, puts a heavy focus on the automotive and battery industries.
- What does this new strategy mean for the EV sector, and how is the industry reacting so far?
UK government unveils new Industrial Strategy
Within the newly revealed Advanced Manufacturing Sector Plan, there are numerous commitments that should provide a boost to the UK’s already-strong and growing EV sector. In this article, we’ve highlighted just a few of the most important commitments for the EV sector, but you can read the document in full here.
The commitments include the Driving Research and Investment in Vehicle Electrification (DRIVE35) initiative, which aims to boost the UK’s industry position as a manufacturer of zero-emission vehicles including EVs. Under this initative, the government is now committing £2 billion worth of automotive capital and R&D funding in the run up to 2030 (the same year the ZEV mandate reaches a key milestone), with an additional £500 million to extend the R&D support further after 2030.
A pilot initiative is also set to be explored with the North East Combined Authority, to create an ‘Electric Vehicles Manufacturing Cluster’. If succesfull, this pilot will form a blueprint to create similar EV manufacturing clusters right across the UK. Nissan was already planning to build several upcoming all-electric models in the UK, but with schemes such as these, we could see more manufacturers basing their EV production in the country.
The existing Battery Innovation Programme will also continue to be supported under the new industrial strategy. To date, the program has already provided £130 million worth of grants to support battery research, but now an additional government investment of £452 million through to 2030 will help unlock further achievements for the UK’s battery industry.
How is the EV industry reacting?
Richard Earl, R&D Director of EO Charging, commented:
“The government’s industrial strategy should be welcomed as a pivotal policy for EVs and EV Charging Infrastructure. The EV & Charging Industry has repeatedly raised concerns about high electricity costs, unstable legislation, slow grid connections, and a lack of skills that has hindered the decarbonisation of transport in recent years.
I’m pleased that this Industrial Strategy sets out to address these issues head on, providing the clarity, coordination and commitment from Government to businesses that has been desperately needed. We’ve seen from economies like China that long-term planning is critical to the success of their Electric Vehicle market. Therefore it’s a relief that the UK now has a 10-year plan in place to drive the growth in the critical automotive and clean energy sectors.
The coordinated approach across energy cost reduction, focus on strategic industries, regional development and export strategies lay the foundations to allow the UK to lead the world in decarbonising transport.”
