British Finance Minister Jeremy Hunt on Thursday stated that Britain will ensure that batteries used to power electric vehicles are manufactured in the country.
“We are absolutely committed to making sure the UK is able to source onshore EV batteries that we need,” Hunt said in a manufacturer’s presentation on Thursday.
Stellantis, the world’s third-largest carmaker by sales, warned on Wednesday that under the terms of Britain’s post-Brexit agreement with the European Union, it would incur taxes when exporting electric vans to the EU beginning next year.
To avoid tariffs, 45% of the value of an EV sold in the EU must come from the UK or the EU beginning in 2024. A battery pack can account for up to half of the cost of a new EV.
Stellantis proposed delaying the implementation of the additional tariffs, which Ford agreed with.