4 ways for UK automotive to survive the net-zero transition

The authors of a recent IMechE report outline the Institution’s recommendations to get the country’s electric vehicle transition back on track.

Level the playing field

The EU and UK automotive sectors depend on and benefit from a close relationship. A technical fix in the short term has been implemented to allow frictionless trade with the EU beyond the Trade and Cooperation Agreement (TCA) Rules of Origin that came into force in January and that will specifically affect BEVs. In the longer term, work towards trade rules that align with achievable transition goals of both the UK and the EU industries. Increase support from government, but make funding conditional on a high percentage of domestic manufacturing and employment. Set up a new automotive task force to work on creating the right conditions for foreign direct investment that will maintain and build the UK’s manufacturing capacity and supply chains.

Roll out the green carpet

Introduce a holistic approach to incentivisation of BEV private purchase, whether users have access to domestic charging or have to rely on public charging. Private buyers making the transition to a BEV should not be economically disadvantaged when compared with petrol or diesel. On electric charge points, there need to be mandated targets from central government and programmes for measuring what works at a local level so that this can be adopted nationally. To ensure charge point delivery continues apace in the light of the delay of the 2030 ban on petrol and diesel sales, the government should consider underwriting the investment risk of the charge point providers. A nationwide skills and retraining plan for the automotive industry is needed. A whole-sector approach is required, with increased focus on upskilling the entire supply chain and aftermarket to enable the transition to zero-emission vehicles.

Spark a homegrown battery boom

Create the right conditions for volume battery production in the UK, including enabling funding, supply-chain development, and securing and processing of critical minerals. Incentivise local clusters around each factory to develop supply chains for other key parts of electric vehicles, not just batteries. More schemes and funding to expedite the scale-up of new battery technologies and other net-zero supportive technologies for commercial exploitation.

Make it circular

Increase consideration of recycling and the circular economy in the automotive industry. Develop, patent and exploit technologies that make recycling of batteries economically viable. Create a regulatory environment to make the UK a leader in this field so that the industry reduces its environmental footprint, and the country is less reliant on an increasingly challenging international market for critical materials. Expand government oversight of end-of-life recycling beyond Defra to join-up responsibility across departments and promote innovation. 

Find out more context and the rationale for these recommendations in the full report, UK Automotive Sector: Surviving the Net-Zero Transition.

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