Britain’s difficult relationship with the EU and its impact on UK industry is exemplified by the recent push from car manufacturers to relax Brexit trade rules on electric vehicles (“German carmakers lobby to maintain tariff-free access to UK”, Report, May 17).
The UK may not be able to compete with the level of subsidies on offer from the US or China to develop the entire EV supply chain. But integrating with the large EU market will help the country carve out its space in the EV industry and build on its strengths. (Over a third of all projects to refine lithium in Europe are in the UK.)
The UK and the EU countries should form a Europe-wide vertical value chain. Lithium can be processed in Britain and then sent to EU countries for battery manufacturing, with tariff-free electric cars traded freely.
Faced with competition from China and others, a pan-European battery supply chain is stronger than the EU and the UK each working on its own.
In the short term, a targeted green battery alliance could be launched, similar to the one Norway has with the EU. This should replace the Brexit Trade and Cooperation Agreement. Longer-term, there is the need for the UK to recognise that, for industries such as carmaking, the most important markets and supply chains are in Europe.
Julia Poliscanova
Senior Director of Vehicles and Supply Chains
Richard Hebditch
UK Director
Transport & Environment
Brussels and London
