Britain’s ambition to become a global leader in electric vehicle batteries is hanging in the balance, according to a new cross-party report that warns the next 12 to 18 months will determine the future of UK gigafactories and the wider automotive industry.
The UK Gigafactory Commission, backed by the Faraday Institution, has published a sweeping set of recommendations aimed at accelerating battery investment, protecting more than 200,000 automotive-linked jobs and safeguarding the UK’s industrial competitiveness.
Its central message is stark: without faster, more coordinated government intervention, the UK risks being overtaken by rivals in Europe, the US and Asia.
A narrow window for investment
Global competition for battery manufacturing is intensifying as countries race to secure supply chains for electric vehicles and energy storage.
While the UK has made progress through initiatives such as the Battery Strategy, the Industrial Strategy and targeted funding programmes, the Commission concludes that incremental progress is no longer enough.
Chaired by former Business and Defence Secretary Lord Hutton of Furness, the Commission argues that Britain is at a critical inflexion point.
Major automotive manufacturers are making long-term decisions now about where to locate production, and the availability of domestic battery supply is becoming a decisive factor.
Without new gigafactory capacity, the UK’s automotive sector faces declining exports, weaker energy security and the risk of losing production overseas.
Lord Hutton commented: “The UK is at a pivotal moment for its automotive and battery industries. This Commission sets out a practical plan for securing a new gigafactory by anchoring it to original equipment manufacturer (OEM) demand, matching international investment incentives, and fixing long-standing barriers around energy costs, planning and grid access.
“If the government acts on these recommendations in the next 12 to 18 months, the UK can protect hundreds of thousands of jobs, rebuild investor confidence and remain a serious competitor in the global race for electric vehicle manufacturing.”
The case for a more interventionist state
At the heart of the report is a call for a shift in mindset at the top of government. The Commission urges ministers to move from a reactive approach to a mission-led industrial strategy, with clear accountability for landing major investments.
One of its headline proposals is the appointment of a named Cabinet-level minister responsible for securing a new gigafactory, an EV manufacturing plant and associated battery supply chains.
This role would be supported by a dedicated Cabinet sub-committee and a small delivery team, creating a single point of leadership to cut through departmental silos and speed up negotiations.
Anchoring demand to unlock UK gigafactories
The report places particular emphasis on securing a major global automotive OEM as a demand anchor for future UK gigafactories.
According to the Commission, guaranteed demand from an OEM with near-term EV expansion plans is essential to make large-scale battery investment commercially viable.
To achieve this, it recommends senior-level government engagement, tailored incentive packages and the rapid availability of pre-approved industrial sites.
These measures would allow the UK to compete more effectively with international rivals offering generous subsidies and ready-to-build locations.
The Commission also calls for a benchmarked, investor-ready support package covering grants, energy costs and site preparation, enabling faster and more credible discussions with battery manufacturers.
Strengthening the domestic supply chain
Beyond cell manufacturing, the report highlights the importance of building resilience across the battery value chain.
It urges greater investment in domestic cathode and anode materials production, aligned with the UK’s Critical Minerals Strategy, to reduce reliance on imports.
Battery recycling is another priority. Expanding “black mass” processing and advanced materials recovery would not only improve sustainability but also strengthen supply security for future gigafactories.
Delivering genuinely shovel-ready sites through an expanded Strategic Sites Accelerator – with grid connections, water access and planning permission secured in advance – is described as essential to winning investment at pace.
Policy reform to boost competitiveness
The Commission warns that industrial competitiveness depends as much on policy certainty as on funding. It calls for action to reduce industrial energy costs by widening relief schemes for energy-intensive industries, a key concern for battery manufacturers.
It also recommends adjustments to the Zero Emission Vehicle mandate to maintain ambition while avoiding penalties that could deter growth, and urges the government to seek flexibility on the 2027 Rules of Origin deadline, given limited UK and EU capacity in battery materials.
Skills and innovation for the long term
Finally, the report stresses that people and innovation will underpin the success of UK gigafactories. 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 Commission also calls for faster scale-up of next-generation battery technologies such as solid-state and lithium-sulphur, with a strong focus on manufacturability and cost reduction.
Taken together, the recommendations paint a clear picture: the opportunity is still there, but the clock is ticking.
