UK Gigafactory Commission Report
Britain's Battery Future
The Commission
The UK Gigafactory Commission was established with the purpose of assessing the UK’s current position and setting out, as clearly as possible, the steps required to secure further UK gigafactory investment and strengthen the UK’s battery supply chain. The Commission’s remit was to determine key priorities for policy action with a view to ensuring that the UK is competitive, resilient and prepared to seize the economic growth opportunities.
The Commission brought together expertise from across industry, policy, academia and public service. The recommendations formulated are intended for His Majesty’s Government, for industry leaders, for investors and for all those concerned with the future direction of this vital sector. The findings of the Commission are based on analysis of industry data, consultation with stakeholders and a thorough review of international trends. At all times, the Commission has sought to ensure that its conclusions are supported by evidence and presented with due impartiality and rigour.
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Summary and Conclusions
While substantial progress has been made through the UK Battery Strategy, initiatives such as DRIVE35 and the Battery Innovation Programme and a series of investments in gigafactory infrastructure, the UK’s current attractiveness to investors is not yet sufficiently competitive. It must move faster. The Commission is persuaded that the best prospect for success lies in attracting a major global (incumbent or new to the UK) automotive original equipment manufacturer (OEM) to manufacture electric vehicles (EVs) in the UK. This would require proactive and sustained engagement by senior ministers with a select group of global partners. Attracting such a partner is, in the Commission’s judgment, the critical next step. If structured effectively, it could bring with it world-class battery manufacturing capabilities and unlock wider supply chain investment. Persistent supply chain gaps, particularly in cathode active materials (CAM) and anode active materials (AAM), must also be addressed. The presence of a domestic CAM producer is, in the Commission’s view, essential to building a secure, fully integrated and investable supply chain.
Proactive, decisive and central leadership anchored at the heart of government will be vital, shifting the UK from a passive open-for-business stance to an active deal-making approach, securing the UK’s future as an EV powerhouse. A Cabinet-level minister should be identified and given personal accountability to the PM and Chancellor for delivering simultaneous investment in a new EV manufacturing centre, a new battery gigafactory, and a new UK active-materials supply chain. The identified minister should be expected to spend a significant proportion of time proactively securing the required investments, supported by a small team or secretariat (including at least one secondee from the Office for Investment). The minister should chair a newly established Cabinet sub-committee with authority to convene departments, remove barriers to the potential investments and resolve inter-departmental conflicts.
It is the Commissioners hope that this report, the product of collective industry and policy expertise, will inform decisive and effective action for the future of battery manufacturing in the UK.
The 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; Chair of the Society of Chemical Industry; and Chair of the University of Warwick’s Innovation District.
- Dr Isobel Sheldon OBE. Chief Executive Officer of Western CAM.
- Rt Hon Baroness Lindsay Northover. Member of the House of Lords Science and Technology Committee.
- Rt Hon Sir Oliver Letwin. Former Minister for Government Policy and Chancellor of the Duchy of Lancaster; currently Senior Adviser to the Faraday Institution.
- Dr Ian Constance. Chief Executive of the Advanced Propulsion Centre UK.
With secretariat support from the Faraday Institution.
Commission Recommendations
The Commission sets out ten priority recommendations that together build on existing policy interventions form a coordinated strategy to secure UK gigafactory investment, strengthen supply chains and protect automotive competitiveness. Recommendations 1, 2 and 3 set out the overarching actions and key objectives, while the subsequent recommendations outline supporting measures that help to achieve them.
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 OEM, battery plants and active material investment is central to achieving this.
Recommendation 1 – Attract an OEM
Prioritise attracting a major global OEM with near-term EV expansion plans as the anchor for new UK gigafactories, recognising that standalone battery projects are unlikely to succeed without an OEM demand base. This should be achieved through senior ministerial engagement, tailored incentives and fast-track sites.
Recommendation 2 – Accelerate gigafactory delivery
Develop a benchmarked opening offer package of incentives to enable rapid senior-led negotiation with global battery manufacturers covering energy costs, sites, grants and financial incentives. Prioritise attraction of established battery manufacturers alongside the encouragement of investment by an OEM.
Recommendation 3 – Build domestic CAM/AAM
Launch a programme for attracting investment in cathode and anode materials manufacturing plants, supported by energy cost relief and precursor refining aligned with the UK Critical Minerals Strategy. Provide targeted support to develop domestic recycling capacity such as black-mass processing and advanced recovery technologies.
Recommendation 4 – Establish central drive for inward investment
Give a named Cabinet minister personal accountability for delivering simultaneous investment in a new gigafactory, EV manufacturing plant and UK active materials supply chain. The Minister should be supported by a small team or secretariat and chair a newly established Cabinet sub-committee.
Recommendation 5 – Reduce energy costs
Increase the level of EIIs relief and broaden support to include vehicle assembly and the wider supply chain, with the aim of bringing UK industrial energy costs into closer alignment with relevant EU peers.
Recommendation 6 – Reform ZEV mandate
Recalibrate the ZEV mandate to balance a drive for ZEV uptake while avoiding penalties and disincentives for growth for those producing and considering further investment in the UK. In addition, the targets should have a closer alignment with market demand and the EU trajectory by resetting the 2030 target to 50-60% of new car sales while retaining the 2035 target for all new cars and vans to be fully zero emission.
Recommendation 7 – Address Rules of Origin
Recognising limited CAM/AAM capacity across the UK and EU, negotiate a deferral or phased transition of the 2027 deadline.
Recommendation 8 – Support innovation scale-up
Fast-track the scale-up of next-generation chemistries (e.g., solid-state and lithium-sulfur), while continuing to direct innovation funding towards manufacturability and cost reduction.
Recommendation 9 – Expand strategic sites
Expand the Strategic Sites Accelerator to deliver shovel-ready sites with grid, water and transport already secured and supported by early remediation and permit pre-clearance.
Recommendation 10 – Develop skilled workforce
Launch a high-profile national campaign modelled on Destination Nuclear, complemented by sector-specific apprenticeships, curriculum reform in universities and colleges and vendor-led training to build the specialist workforce needed.
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