To put this depressing story into perspective, it has been estimated that 41 gigafactories are either operating or planned in Western Europe, compared to just three in Britain (and that’s if Britishvolt is optimistically included). Governments in Germany, France and elsewhere have spent billions of euros to attract top battery makers, which will be fundamental to the production of 21st-century cars. The strategic logic at work is not hard to understand: in the future, manufacturers will be based where access to batteries is local and simple. A fully functional domestic supply chain will also protect against external shocks and create jobs to compensate for those lost in the transition from petrol and diesel. A vision of this combined future can be seen in Sweden, where Northvolt – a state-owned battery startup that has become one of Europe’s largest manufacturers – has partnered with Volvo, Volkswagen and BMW. But a similarly proactive industrial strategy appears to be beyond the present government. There are plans for a new gigafactory to service Nissan in Sunderland, but Britain needs up to seven more by 2030. The financial support offered by Whitehall has been woefully inadequate as successive ministers have had it up their sleeves. This laissez-faire standstill has become an existential threat to the future of the domestic auto industry. Tata Group of India, which owns top UK carmaker Jaguar Land Rover, is believed to be considering a rescue attempt for Britishvolt, but it has reportedly been put on hold so far due to a lack of government support. There are fears that with no good reason to focus on Britain, Jaguar Land Rover may move future car production to its factory in Slovakia. Meanwhile, there are other signs that a tipping point is approaching. BMW moves production of Mini EVs to China. UK electric van startup Arrival is moving to the US, where it can take advantage of new economic incentives offered by the Biden administration. Britishvolt, a three-year-old startup with no existing product and no car manufacturer, should never have been so over-hyped by Mr Johnson in the first place. However, the company’s location on the “red wall” symbolized hopes that the energy transition – however challenging – could be the catalyst for an economic renaissance in our post-industrial regions. This is a prize worth fighting for. But as investment decisions are made that will shape the global auto industry for decades to come, its rise and fall shows that the government is simply failing to do its job. To reverse the situation, carmakers and the biggest battery companies need to see a coherent industrial strategy – one in which the state has skin in the game and offers serious investment incentives. This is all the more vital given the ongoing Brexit headwinds and endless political turmoil. Before it is too late, Mr Shapps must recognize the looming car crash in the country’s flagship manufacturing industry and take belated action to prevent it.
