London Daily

Focus on the big picture.
Sunday, Apr 12, 2026

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
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
UK Calls for Full and Toll-Free Access Through Strait of Hormuz Amid Rising Tensions
Starmer Signals Strategic Shift for Britain Amid Escalating Iran-Linked Tensions
UK Issues Firm Warning to Russia Over Covert Underwater Military Activity
OpenAI Halts Stargate UK Project, Casting Uncertainty Over Britain’s AI Expansion Plans
Starmer Voices Frustration Over Global Pressures Driving UK Energy Costs Higher
UK Deploys Military Assets to Protect Undersea Cables From Suspected Russian Threat
Canada Aligns With US, UK and Australia as Europe Prepares Major Digital Border Overhaul
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
Reform UK Proposes Visa Restrictions on Nations Pursuing Reparations Claims
Public Reaction Divides Over UK Decision to Bar Kanye West
Calls Grow for UK to Review US Base Access Following Concerns Over Escalating Rhetoric
UK Indicates It Will Not Permit Use of Its Bases for Potential US Strikes on Iran’s Energy Infrastructure
UK Prime Minister Defends Decision to Bar Kanye West, Questions Festival Booking
UK Accelerates Efforts to Harmonise Medical Technology Rules with United States
Wireless Festival Cancelled After Kanye West Denied Entry to the United Kingdom
Australia’s most decorated living soldier was arrested at Sydney Airport and charged with five counts of war-crime murder for the killing of unarmed Afghan civilians
The CIA’s Secret Technology That Can Find You by Your Heartbeat Successfully Locates Downed Airman
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
×