London Daily

Focus on the big picture.
Thursday, Dec 18, 2025

Thousands of jobs at risk as government falls behind in plans to build battery industry

Thousands of jobs at risk as government falls behind in plans to build battery industry

The findings, detailed in documents seen by Sky News, will raise questions about whether Britain's car industry can be maintained at its current levels, as batteries replace engines as the single most valuable component of a motor vehicle.

The government has been warned it is falling dangerously behind in its plans to build a British battery industry, with manufacturing capacity forecast to be barely half the needed level by the end of the decade, according to internal documents seen by Sky News.

The dossier of figures submitted to the Department for Business, Energy and Industrial Strategy (BEIS) shows that the UK will have to increase the amount of lithium, cobalt and graphite - critical ingredients in battery production - by staggering amounts, as much as 90 times the current level, to have any hope of supplying that industry.

The data, produced by Benchmark Mineral Intelligence - one of the world's leading authorities on the battery industry and a member of the BEIS Critical Minerals Expert Committee - will raise questions about whether Britain's car industry can be maintained at its current levels, as batteries replace engines as the single most valuable component of a motor vehicle.

With hundreds of thousands of jobs dependent on the transition, they raise deep questions about Britain's economic trajectory in the coming years.

At the heart of them is a projection showing that by 2030, the year the government plans to ban the sale of internal combustion engine cars, it will not have enough gigafactories - large-scale battery plants - to sustain car production at current levels.

The Benchmark data projects the UK is likely to have just short of 70 gigawatt-hours of battery production, but that it should be targeting 175 GWh if it is to retain car production.

The proposed Britishvolt gigaplant for Cambois, Northumberland, close to Blyth


It is the equivalent of four of Tesla's gigafactories - themselves among the biggest factories in the world.

The news comes only weeks after the government committed £100m of taxpayer money into a gigafactory proposal, Britishvolt, which will build a plant in the North East of England.

Nissan's battery maker, Envision AESC, has also pledged to pump extra cash into its Sunderland plant where cells for the Leaf EV are produced.

However, even if these two projects produce at maximum capacity, the UK will still have less than half the battery production it needs by 2030.

Britishvolt has received £100m of taxpayer's money for its gigafactory proposal


Government insiders have told Sky News that they hope for perhaps one or two more gigafactory announcements in the coming months, revealing that they have been in discussions with a host of manufacturers, including Rivian, Polestar and Canoo, about future plants.

They have also had a "number of detailed conversations" with Tesla about it building a secondary European manufacturing hub, following its Gigafactory in Berlin.

Questions also remain about Jaguar Land Rover's plans.

However, the numbers submitted to the government, which is actively pondering its strategy on critical minerals, also underlines the scale of physical materials needed for these factories.

Electric car batteries produced by Britishvolt


It projects that the UK's demand for lithium - the pivotal material in all mainstream rechargeable batteries - would rise from 1,500 tonnes this year to around 60,000 by 2030 on the basis of current gigafactory plans, and to 140,000 tonnes if the UK aims to increase its battery manufacturing in line with Benchmark's recommended target.

There are similar increases projected in the need for graphite, nickel and manganese and a large if slightly less exponential increase in demand for cobalt (since producers are gradually reducing their need for the controversial metal, mined primarily in the Democratic Republic of Congo).

All told, the increase in the necessary supply of these critical metals will represent one of the biggest challenges for UK industry in the coming years.


In much the same way as the UK is affected by international demand for natural gas at present, it is likely to become locked in a similar race for the natural resources needed for battery production.

And while a certain chunk of UK lithium could be sourced from domestic mines, they remain at pilot stage, and might, depending on battery production, only provide around a half of UK needs.

More urgently, the Benchmark dossier warns that the UK's biggest vulnerability is that while plenty of exploratory work has been done to exploit any available lithium and to finance the construction of new gigafactories, there remains a gaping void at the heart of the strategy.


The UK has no producers of either cathode active materials or anode materials - the intermediate step where the raw materials mined from the ground are turned into pristine chemicals which then get sent to gigafactories.

Johnson Matthey had been working on a cathode project, but abruptly pulled out late last year.

At present the global battery industry is dominated by Asian production in Japan, China and South Korea, but both the US and Europe have declared that they intend to build their own domestic supply chains.

With countries around the world having pledged to shift their car markets from petroleum towards battery power, this promises to be one of the biggest adjustments in modern industrial history, with many winners and losers.

The Benchmark data suggests that the UK's plans may fall short of the ambitions being mapped out elsewhere.

A BEIS spokesperson said: "The UK continues to be one of the best locations in the world for auto manufacturing, with a major government investment programme of up to £1bn to electrify our supply chain and help meet future demand for batteries and their raw materials.

"As a result, we have already seen major investments in battery production from Britishvolt and Envision AESC which will create thousands of jobs across the country.

"We will also publish a strategy this year outlining how we will ensure the UK has a resilient, long term supply chain for critical minerals."

Newsletter

Related Articles

0:00
0:00
Close
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
×