Industrial policy

As the global transition towards sustainable transportation gains momentum, the United Kingdom is set for a significant industrial transformation.

Building the future of UK road transport

By 2035 the UK, in line with Europe, will end the sale of new petrol and diesel cars in order to put the country on the path to a decarbonised road system by 2050. Alongside this will come an industrial transformation in the UK as zero emission transport replaces the production of petrol and diesel cars.

There are a number of areas the UK could excel at in order to roll out an industrial strategy that will not only aid it in achieving net zero but also help its economy flourish long into the future.

Those areas include electric vehicle production, battery production, lithium refining, and battery recycling.

What the UK benefits from is a clear vision for the future of road transport, backed up by market certainty which will be delivered via the zero emission vehicle (ZEV) mandate - what it needs to do is ensure it makes the most of that certainty.

Two gigafactories have been secured by the UK add stat about vans

80,000-100,000 jobs could be created by the shift to EVs, both directly and indirectly, in the UK

40kt of Lithium could be the refining capacity of the UK by 2030

What's the turn in the road

For the UK to make a success out of decarbonisation and industrial policy, it needs to take a number of actions.

This includes, providing clear policy frameworks to deliver on its aims to decarbonise transport which already exists for cars and vans but is needed for HGVs, planes and shipping to provide certainty for businesses and investors.

The UK also needs to target foundational sectors needed for net zero industry, particularly on battery value chain and renewable energy, with interventions like contracts with specifics on the supply of critical minerals with contracts on the ground instead of just vague agreements; solid measures to secure gigafactories and mid-stream production in the batteries supply-chain; and cutting the cost of energy by investing in the grid and new renewables.

Collaboration, upskilling, and planning are vital to the UK’s development of a green industrial economy. That includes having a close strategic relationship with the EU and others to support battery manufacturing and supply chains; ensuring skills policy and regional policy are addressed; working with private finance to unlock greater levels of investment and scaling up innovation, green tech being a particular asset to the UK and ensuring that the planning and permitting system and relevant agencies (including regional bodies) have the capacity and capability to deliver at pace.