A stark new report has issued a grave warning that the United Kingdom could lose as many as 90,000 jobs in its vital car and battery production sectors if it continues to depend heavily on China for essential raw materials. This dependency poses a severe threat to the nation's economic stability and its standing as a global automotive manufacturing hub.
Critical Supply Chain Vulnerabilities Exposed
The UK Gigafactory Commission, which authored the report, states that without secure and resilient supply chains, the country faces the prospect of massive job losses. The current policy landscape, particularly under the Labour Party government, is reportedly driving investment away from Britain, putting hundreds of thousands of positions across the entire automotive ecosystem at significant risk.
The Commission emphasised that swift and decisive action is imperative. "Unless firm and coordinated action is taken, the UK risks falling behind its international competitors," the report explicitly warned. It further cautioned that without intervention, Britain could jeopardise its status as a serious carmaking nation, a sector that currently employs over 800,000 people and contributes a substantial £22 billion annually to the economy.
A National Strategic Imperative
In a foreword to the report, Commission chairman Lord Hutton underscored the critical nature of the issue, describing batteries as a "national strategic imperative." He argued that the UK cannot afford to remain reliant on foreign supply chains for such a vital component of its economic and energy future.
The report reveals that UK-based original equipment manufacturers (OEMs) have been clear in stakeholder interviews: the current governmental approach is actively discouraging investment. These companies have indicated that reform is essential if they are to commit new model production to UK facilities.
Growing Concerns Over Resilience and Future Demand
Separately, the warning highlights escalating concerns about the resilience of supply chains in key industries linked to electric vehicles and advanced manufacturing. The report paints a concerning picture of vulnerability, suggesting that a major disruption—similar in scale to the Covid-19 pandemic—could severely cripple supply networks.
Such an event could leave production lines paralysed and force companies to implement widespread job cuts. The Commission argues that without more secure access to critical materials like lithium and cobalt, the UK faces the very real prospect of extensive sector-wide disruption and significant layoffs.
The Gigafactory Gap
Compounding the issue is a significant shortfall in domestic battery production capacity. The Commission warned that UK battery demand is projected to exceed 100 gigawatt-hours by the early 2030s, driven by the transition to electric vehicles. Alarmingly, only one major gigafactory is currently operational in the country, creating a dangerous gap between future demand and present manufacturing capability.
This combination of foreign dependency, investment discouragement, and insufficient domestic infrastructure creates a perfect storm that threatens the livelihoods of tens of thousands of workers and the future of a cornerstone British industry.
