Britain’s battery future at a critical turning point
New recommendations set out path to secure investment, protect jobs and secure the UK’s automotive competitiveness
21 January 2026
A cross-party commission has today published a major set of recommendations designed to secure Britain’s place in the global battery industry, safeguard the future of its automotive sector, and ensure the country remains competitive in a rapidly shifting international landscape.
The Commission is supported by the Faraday Institution, the UK’s independent institute for electrochemical energy storage research, skills development, market analysis, and early-stage commercialisation. The list of commissioners include the APC’s CEO Ian Constance.
Chaired by former Defence and Business Secretary, Lord Hutton of Furness, and including a cohort of leading cross-party parliamentarians and industry experts, the UK Gigafactory Commission warns that the UK is now at a decisive moment. As Europe, the United States and Asia continue to move at pace in attracting gigafactory investment, the UK is now at a critical crossroads. Without firm, coordinated action, the country risks falling further behind – placing its industrial base, export capacity and more than 200,000 jobs linked to the automotive sector at serious risk.
The commission concluded that to secure long-term automotive competitiveness and energy security, the UK must adopt an interventionist mindset, acting decisively with financial incentives and proactive engagement. A tripartite strategy focused on bringing together an automotive OEM as the demand anchor, a cell manufacturer as the gigafactory operator and active material manufacturers to strengthen the UK supply chain is central.
The next 12-18 months will be decisive.
Lord Hutton of Furness, said;
“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 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.”
CEO of the Faraday Institution, Professor Martin Freer, said;
“These recommendations are both practical and targeted. They identify exactly what has been missing from the UK’s battery strategy – a demand anchor from a major OEM, investor-ready sites with power and planning secured, competitive energy costs, and a coherent approach to building domestic cathode, anode and recycling capacity. Taken together, these measures would represent a genuine step-change in the UK’s ability to attract gigafactory investment and secure the future of our automotive sector.”
Richard Parker, Mayor of the West Midlands, said:
“The Commission’s report shows the scale of the opportunity and the need to act fast. Its recommendations back my plan to put the West Midlands at the forefront of the global battery industry.
“Our Coventry & Warwick Investment Zone site has planning permission and is being powered up ready for battery manufacturing. That puts us in a strong position to work more closely with government to attract world-leading innovators, create futureproof jobs and opportunities for our young people, and cut carbon emissions.”
The Commission’s findings build on the substantial progress that has been made through the UK Battery Strategy, the Industrial Strategy and Advanced Manufacturing Sector Plan and a series of investments in gigafactory infrastructure. Recent government investments include DRIVE35, a programme for capital and R&D funding for the automotive industry as well as the Battery Innovation Programme, set up to convert UK battery science and innovation into industrial and economic advantage, aligned with government’s plan for growth and net zero goals.
The Commission’s recommendations, which are intended to inform the next phase of implementation of the UK’s Industrial Strategy, focus on three clear priorities: proactive government leadership, building the UK’s capabilities and capacity, and policy reforms to strengthen the UK’s competitiveness.
A New Model of Government Leadership
The Commission calls for a shift to a more proactive, strategic approach to securing investment – led from the centre of government. It recommends appointing a named Cabinet minister with responsibility for securing investment in a new gigafactory, an electric vehicle manufacturing plant and the UK’s active materials supply chain. This minister would be supported by a small secretariat and a new Cabinet sub-committee, this role would provide the single point of accountability needed to drive negotiations, resolve barriers and align departments behind a coherent industrial mission.
Building the UK’s Battery Capabilities and Capacity
To restore the UK’s competitiveness, the Commission argues that securing a major global original equipment manufacturer (OEM) with near-term EV expansion plans must be the government’s foremost priority. OEM demand is essential to underpin the long-term viability of new gigafactories, and the Commission recommends senior-level engagement, tailored incentives and the use of fast-tracked sites to support this effort.
This should be reinforced by a benchmarked, investor-ready package covering energy costs, grants, site support and other financial measures, enabling faster and more credible negotiations with battery manufacturers. The Commission also highlights the need to build domestic cathode and anode materials manufacturing, aligned with the UK Critical Minerals Strategy, and to strengthen UK recycling capacity through investment in black-mass processing and advanced recovery technologies. Delivering genuinely shovel-ready sites through an expanded Strategic Sites Accelerator – with grid, water and planning secured in advance – will be critical to landing investment at pace.
Policy Reform to Strengthen the UK’s Competitiveness
The Commission stresses that competitiveness also depends on a policy environment that gives manufacturers confidence to invest. It calls for reducing industrial energy costs by increasing and broadening Energy Intensive Industries relief; recalibrating the Zero Emission Vehicle (ZEV) mandate to maintain ambition while avoiding penalties that constrain growth; and negotiating a phased approach to the 2027 Rules of Origin deadline given limited UK and EU active cathode and anode materials manufacturing capacity.
To ensure the UK remains at the forefront of innovation, the Commission also recommends fast-tracking the scale-up of next-generation battery chemistries, including solid-state and lithium-sulfur, with a clear focus on manufacturability and cost reduction.
A skilled workforce is essential to delivering this vision, and the Commission calls for a high-profile national campaign – modelled on Destination Nuclear – supported by sector-specific apprenticeships, curriculum reform in universities and colleges and vendor-led training.
Supplementary information
List of Commissioners
- Rt Hon Lord John Hutton (Chair), former Secretary of State for Defence
- Rt Hon Greg Clark, former Secretary of State for Business, Energy and Industrial Strategy and Chair of the Society of Chemical Industry, and currently Chair of the University of Warwick’s Innovation District
- Dr Isobel Sheldon OBE, CEO of Western CAM
- Rt Hon Baroness Lindsay Northover, Member of the Lords Science and Technology Committee
- Rt Hon Sir Oliver Letwin, former Minister for Government Policy and Chancellor of the Duchy of Lancaster, currently Senior Advisor to the Faraday Institution
- Dr Ian Constance, CEO at Advanced Propulsion Centre UK