Some good post brexit news for the UK for EV batteries

I'd heard rumours about this and just saw this on the BBC.

I agree that this is good news - the new factory will make it easier to build the several more that we need. However, the costs of the subsidies that will be paid by our desperate government will cost us tax-payers dear.

Seems to have cost us an awful lot.

IIRC Tata have already had hundreds of millions from us for taking over British Steel didn't they, and have their begging bowls out for more. They've found themselves a nice big trough and are making the most of it.

Aren't all governments subsidising, giving allowances on a massive scale for these, we're lagging behind because we haven't gone in full hearted before now. In fact if we want to keep up we will need even more subsidies, enticements to build Gigafactories here.

US with their IRA policy comes directly to mind.

Tesla getting a billion from German govt Tesla set for at least 1 billion euros in German subsidies - Business Insider

Nothvolt getting half a billion from Germany and France for sites there.

and many more examples easy to find on the interweb.

It’s good news at a price, but if we don’t do it some other country WILL !.
I believe Spain are running very close to this deal as well and it’s not fully signed up yet I believe ?.

ianwlk said:

I agree that this is good news - the new factory will make it easier to build the several more that we need. However, the costs of the subsidies that will be paid by our desperate government will cost us tax-payers dear.

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How else are we going to encourage manufacturers into, or stay in the UK if not through government support?

It would be nice if they took some of the billions of pounds of subsidies from the oil industries and gave it to the battery manufacturers and network providers . . . oh, and the solar panel manufactureres and wind turbine manufacturers as well.

There was something about this in the paper not so long ago. A government spokesman responded with

“This is utterly misleading analysis. The Climate Change Committee themselves have said we’ll still need some fossil fuels as part of our move towards the net zero target, which is why we must ensure we remain an attractive investment for all energy sectors, as we have consistently been for renewables.

“Our domestic oil and gas industry have a vital role ensuring energy security and the transition to net zero, and alongside that since 2010 the UK has seen more than a 500% increase in the amount of renewable electricity capacity connected to the grid, making the UK a world leader in offshore wind with the most installed capacity in Europe. This will play a key role in achieving net zero by 2050, and will create thousands of new jobs around the country.”

I wouldn't always trust a government spokesman and I can't tell whether that's truth or lie but it seems fairly a plausible reason why subsidies continue for fossil fuel industries.

Oh, and I'm not sure I would approve of UK government (taxpayer!) money subsiding solar panel manufacturers, seeing as most of them are in China!

smokie said:

Oh, and I'm not sure I would approve of UK government (taxpayer!) money subsiding solar panel manufacturers, seeing as most of them are in China!

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Top 6 solar manufacturers are in China, but there are manufacturers in Canada, USA, and South Korea. Goverment subsidies would entice these manufacturers to set up production in the UK, generating local jobs.

We will still need fossil fuels to support the transition to renewables, but not half as much as the oil industry would like you to think, just as coal has been phased out by wind.

And you can always tell when a politician is lying, you can see their lips moving.

I think you'd struggle to pay enough subsidy to entice a Chinese (or other Asian) manufacturer into the UK, but it's a nice thought.

Seems that China has around 75% of world manufacture, partly presumably because they also happen to have a large %age of the world's silicon.

Does the US manufacture only because they're not allowed to import them from China I wonder? They stopped imports because of the human rights issues in the area where the raw material originates.

The government have set aside £1Bn for enticement in the tech industries as a whole. To set up a IC fab facility which is desperately needed is between 5 and £20Bn alone depending on the size of the wafers produced.

Unless we up the anti we are just going to get the crumbs.

Can't disagree with that but it is going to be hard to displace an established industry from anywhere, It's a shame we have lost many of our own industries and that skills are not really being taught as well as they used to be.

We can't even staff the industries we currently have, and at the moment we seem prone to strikes, so there isn't the attraction of a cheap and plentiful workforce.

It means that the UK doesn't really have much to offer except money (and we don't have much of that either!!).

smokie said:

Can't disagree with that but it is going to be hard to displace an established industry from anywhere, It's a shame we have lost many of our own industries and that skills are not really being taught as well as they used to be.

We can't even staff the industries we currently have, and at the moment we seem prone to strikes, so there isn't the attraction of a cheap and plentiful workforce.

It means that the UK doesn't really have much to offer except money (and we don't have much of that either!!).

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yes as predicted by Prof Patrick Minford, the British car industry will be much smaller post-Brexit. The government seems happy with this decline.

As above, in reality there isn't much they can do. We can't afford the investment required.

ianwlk said:

yes as predicted by Prof Patrick Minford, the British car industry will be much smaller post-Brexit. The government seems happy with this decline.

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Only the other day, that the Stellantis car plant in Ellesmere Port who has now finished production of the Vauxhall Astra, was due to start production of EV van's.
This quote has been taken from TV coverage by ITV News.

"The world's fourth biggest car maker committed to making electric vehicles at its Ellesmere Port and Luton plants two years ago.
But in a submission to the inquiry, the company said the Brexit deal was a "threat to our export business and the sustainability of our UK manufacturing operations".
It called on the Government to reach agreement with the EU to maintain existing rules until 2027, rather than next year's planned changes which state 45% of an electric car's value should originate in the UK or EU to qualify for trade without tariffs".