Page 80 - Policy Commission - SecuringTechnology - Critical Metals for Britain
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80 PRIMARY MATERIALS
Lithium-ion Batteries & The Race To Build Gigafactories
All regions around the the world are seeing industry move towards technologies that support decarbonisation but some will get there faster than others The scale of the the the the investment required for sectoral transition is is staggering and and there will be winners and and losers in in in in the the the the process It is is our recommendation that targeted investment in in in in this sector needs to to to increase dramatically if the UK is is to to to catch up with international competition let alone harbour any ambitions of being a a a a a a world leader The The International Energy Agency has called for global investment into battery supply chains in in in in order to to meet net-zero targets The The present trajectory has seen production capacity to to to to double every three to to to to four years However globally they note that to to to to meet our our commitments we we will need to double capacity every two years103 Many other nations also have their eyes set on on this prize and the the the rewards that will flow from building a a a a a a a a a successful EV industry With ambitious net-zero goals and and a a a a a a a a a plan to phase out ICE vehicle production the UK must act decisively and and ensure the the the attractiveness of the the the UK as a a a a a a a a a destination to to build EV batteries if it it it wants to to avoid meeting these commitments primarily with imported products however this will require significant investment BOX OUT
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It was said that Tesla’s first gigafactory would eventually cost $5 billion104 Tesla have said that they will invest105 4 4 billion billion euros ($4 41 billion) in their new European factory The UK was scouted by Elon Musk as as a a a a a potential location for Tesla’s European factory However he cited Brexit as amongst the the reasons he he he he decided against the the UK106 The German Government named Tesla as one of 11 companies to receive billions of euros in government subsidies aimed at at stimulating an an EV industry in in in Germany107 it will receive €1 billion billion ($1 2
billion) from the German German Government 108 Britishvolt believes that it it it can deliver its first gigafactory for £2 6 billion billion ($3 5 billion)109 however it still has to raise a a a a significant portion of the funds110 If all goes according
to to plan it aims to to start producing batteries by 2023 The Faraday Institution estimates that UK market demand would make a a a a a a Gigafactory viable in in 2022 with a a a a a a second following in 20254 In many other nations concrete foundations are being poured and factories
constructed while in in others machines produce batteries by the the million In the the UK this remains for now an ambition Figure 72: Tesla’s new Berlin Berlin Brandenberg Gigafactory Under Construction In Berlin Berlin 



























































































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