Andy Palmer, the former Aston Martin chief, has delivered a stark warning about the future of Britain's auto industry
Credit: Bloomberg
Britain must build at least four gigafactories over the next five years or risk losing the domestic car production industry, the former head of Aston Martin has warned.
Andy Palmer, who was chief operating officer at Nissan before joining the luxury car brand in 2014, said that the £78.8bn sector could quickly become an “antiquated relic”.
Mr Palmer called for the creation of a “gigafactory taskforce” to oversee the construction of the battery megaplants, in a letter to both Prime Minister Boris Johnson and Kwasi Kwarteng, the business secretary.
Britain is considerably behind its international peers in its pipeline of battery manufacturing plants. Both China and the US have built up sizable production pipelines, while the European Union is expected to build at least 11 new gigafactories by 2030.
Mr Palmer said he believed Britain was facing the “gravest threat” to its domestic industry he had ever seen.
“Put simply, if the United Kingdom does not establish at least four gigafactories in the next five years, we risk losing our entire auto industry and the 800,000 jobs that go with it,” he wrote.
“Without electric vehicle batteries made in the UK, the country’s auto industry risks becoming an antiquated relic and overtaken by China, Japan, America and Europe.”
The former Aston Martin chief also said that “business sense” dictated the auto industry would move to where the batteries were produced.
He also said that by 2026 electric vehicles built by UK firms would only be permitted to contain 50pc international content or face “crippling tariffs”, as per the terms of the Brexit deal.
“Leaving the European Union provides us with opportunities to compete in the industries of the future,” he said.
“Yet as things stand, France, Germany and the wider EU are showing their intent by making massive investments in factories that produce batteries and electric vehicle components.”
Mr Palmer, who was also crucial to the launch of the iconic Nissan Leaf, said that he was “encouraged” by the news that BritishVolt would build the UK’s first gigafactory in Blyth, but said “we mustn’t stop there”.
“I am urging you to establish a ‘gigafactory taskforce’ with the express purpose of identifying an achievable and ambitious plan that allows the UK to build the gigafactories needed in the next five years,” he wrote.
A Government spokesman said it was investing "millions to expand the UK’s supply chain for cleaner vehicles" and that it was working with the auto industry to "ensure it remains competitive for years to come".
“As part of the Prime Minister’s ten point plan, we recently announced £500m — as part of a wider commitment of up to £1 billion — to support the electrification of UK vehicles and their supply chains, including developing gigafactories in the UK," the spokesman said.
“We remain dedicated to securing UK gigafactories, and continue to work with investors through our dedicated Automotive Transformation Fund to progress plans to mass manufacture the batteries needed for the next generation of electric vehicles.”
Mr Palmer departed Aston Martin in May as part of an overhaul of its leadership and board. He oversaw the revival of the company from near-collapse when he joined in 2014. However, the company’s share price repeatedly faltered after it made its public bow in 2018.
The Faraday Institution has estimated that domestic demand for electric vehicles will be enough to support the need for eight gigafactories across the country by 2040. By 2030, the UK is expected to account for just 1.45pc of Europe’s entire electric vehicle capacity.
Research group Benchmark Minerals Intelligence estimated that the UK will need anywhere between four and eight gigafactories, producing 175 gigawatt hours -or 3m cars per annum — up and running by 2035.
The European Commission recently approved nearly $3.5bn (£2.7bn) in funding for the electric-vehicle battery supply chain.
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