The UK is falling behind Europe, the US and Asia in attracting investment for gigafactories, which is placing the UK’s industrial base at risk as the country faces a supply gap that would leave sectors such as automotive dependent on imports, exposed to higher costs and at risk of lost competitiveness.
Gigafactories are a critical part of the energy transition, producing the batteries needed for electric vehicles (EVs) as well as areas such as energy storage from renewables. Government strategies link gigafactory growth with net-zero, energy security and industrial renewal as part of its Modern Industrial Strategy published in June 2025, but their delivery needs to improve, says the UK Gigafactory Commission.
Its report, Britain’s Battery Future, says: “The UK is now at a critical crossroads. Without firm, coordinated action, the country risks falling further behind – placing its industrial base, export capacity and more than 200,000 jobs linked to the automotive sector at serious risk.”
Also calling for an integrated supply chain, the Commission says that “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.”
To address the issues, the Commission is calling for a ‘tripartite strategy’ which is focused on bringing together an automotive manufacturer as the demand anchor, a cell manufacturer, as the gigafactory operator, and an active materials manufacturer to strengthen the supply chain. The Commission also recommends appointing a named government minister with responsibility for these investments. The minister would be supported by a ‘small secretariat and a new Cabinet sub-committee,’ the role providing a single point of accountability, the Commission said.
Other areas that the Commission recommends for action include development of a skilled workforce, a reduction in energy costs, and the fast-track scale-up of next-generation chemistries for example in the area of solid-state and lithium-sulphur batteries.
The UK has two gigafactories in development, the new AESC plant in Sunderland, which will supply the nearby Nissan car plant as well as other customers, and the Agratas facility in Bridgwater, supplying Jaguar Land Rover, with plans to support other customers. The Commission says that while these facilities mark an important step, they will not be sufficient to support the growth in EV manufacturing required to secure the future of the UK automotive industry.
Chair of the Commission, Lord Hutton of Furness said: “The UK is at a pivotal moment for its automotive battery sector […] If the Government acts on these recommendations in the next 12 to 18 months, the UK can protect hundreds of thousands of jobs, rebuilding investor confidence and remain a serious competitor in the global race for electric vehicle manufacturing.”
Other members of the Commission include Greg Clark, chair of SCI's board of trustees, and chair of the University of Warwick’s Innovation District; and Dr Isobel Sheldon, CEO of Western CAM.
The UK Gigafactory Commission was established in June 2025 to provide independent advice on how the UK can accelerate large-scale battery manufacturing and attract gigafactory investment. It brings together senior cross-party political figures and industry experts with experience in government, manufacturing, finance, energy and policy. The Commission's recommendations are intended to inform the next phase of the implementation of the UK's Industrial Strategy.
Further reading:
- Battery company plans new £1 billion Gigafactory
- Battery energy storage system project kicks off £1 billion investment by Masdar
- Critical minerals: UK unveils plan to boost production
- Industrial strategy has boosted business confidence - but more work is needed
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