Wednesday 24 January 2024

‘UK’s EV vulnerability: Battery dependency raises concerns’

The UK is at risk of falling behind in the global electric vehicle (EV) revolution.

That's according to a new report from Aston University's Centre for Business Prosperity, which highlights a weak position for the UK to capitalise on the rapid EV adoption and immediate market opportunities.

The research sheds light on a critical dependency issue - the UK's heavy reliance on battery imports, surpassing exports by 10.5 times.

This exposes the nation to potential vulnerabilities as other countries, particularly Germany and China, continue to lead in the global EV market, according to the study.

The report highlights the multifaceted challenges confronting the UK's automotive sector, stemming from technological advancements, socioeconomic transformations and geopolitical intricacies.

Experts note that the recent Brexit implications, as outlined in the Trade and Cooperation Agreement, add a layer of complexity, particularly in navigating non-tariff measures and rules of origin influencing EV exports.

Jun Du, Professor of Economics at Aston Business School, said: "Our research highlights the weakness of the UK’s current position and outlines the strategic interventions urgently needed to fortify the UK’s interests and navigate the transformative landscape of the EV revolution."

Dr Oleksandr Shepotylo, Senior Lecturer in Economics at Aston Business School, said: "The report also shines a light on the level of government intervention in the EU, US and China, as all have coherent industrial strategy that capitalise on the shift to net zero, whilst the UK does not, favouring a reactive sticking plaster approach, such as the short term extension of Rules of Origin deadline with the EU.

"Whilst this provides respite to the UK the risk is that the gap with its competitors widens."