Saving the UK’s car industry: EVs, gigafactories and the Inflation Reduction Act

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10 March, 2023


Last year was monumental for electric vehicles (EVs) with a 53 per cent increase in global sales compared to 2021, and the global market exceeding $1 trillion. While the UK has been a leader in introducing the 2030 phase out date for new sales of petrol and diesel vehicles, the government has not put forward an overarching strategy for the future of battery and car manufacturing in the UK. Without this, the UK will struggle to attract the significant level of investment needed to support the automotive sector’s transition to EVs.

This briefing outlines the significance of the US Inflation Reduction Act in shaping the necessary response from the UK and sets out the challenges and solutions for domestic EV and battery manufacturing in the country.

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Helena Bennett, head of climate policy,

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