Warning over UK losing 90,000 car and battery jobs

A new report says the UK risks losing up to 90,000 jobs in car and battery production if it remains dependent on China for key raw materials.

The UK could lose 90,000 car and battery jobs without secure supply chains, it has been warned. A new report says the UK risks losing up to 90,000 jobs in car and battery production if it remains dependent on China for key raw materials.

The UK Gigafactory Commission warned current Labour Party government policy has been driving investment out of Britain and putting hundreds of thousands of jobs at risk across the automotive sector.

Without swift action, the Commission warned Britain could risk losing its place as a serious carmaking nation. “Unless firm and coordinated action is taken, the UK risks falling behind its international competitors,” the report stated.

The automotive industry employs more than 800,000 people across manufacturing, supply chains and dealerships, and contributes £22billion a year to the UK economy.

“UK-based OEMs have been clear in stakeholder interviews that the current approach is discouraging investment and that reform is required if they are to commit new model production to the UK,” the report said.

In the foreword, Commission chairman Lord Hutton said the issue could not be ignored. “Batteries have become a national strategic imperative,” he wrote.

“The UK cannot afford to remain dependent on foreign supply chains for such a vital component of our economic and energy future.”

Separately, a warning highlights growing concern about the resilience of supply chains in key industries linked to electric vehicles and future manufacturing.

The report says that a major interruption — similar to the Covid pandemic — could seriously disrupt supply networks, leaving production vulnerable and forcing companies to cut jobs.

It argues that without more secure access to critical materials, the UK could face widespread disruption and significant layoffs across the sector.

The Commission warned that UK battery demand could exceed 100 gigawatt-hours in the early 2030s, yet only one major gigafactory is currently operating.