Net zero reliance on China 'puts 90,000 UK jobs at risk', think tank warns

"Britain's heavy reliance on China for net zero technologies such as batteries could put as many as 90,000 manufacturing jobs at risk in the event of a major supply chain shock, according to a new report. Analysis by the Institute for Public Policy Research (IPPR) warns that a severe disruption to battery component supplies, lasting as little as a year, could cripple the UK's automotive industry, sharply reducing electric vehicle production and threatening factory jobs across the country."

"The report models a scenario in which geopolitical conflict, such as a crisis over Taiwan, or a natural disaster disrupts Chinese battery manufacturing and processing. In that event, UK battery and car production could fall by nearly half, with widespread knock-on effects across supply chains. Researchers estimate that around 67,000 jobs in EV manufacturing, 8,000 in battery production and almost 15,000 roles across the wider battery supply chain would be placed at risk, taking the total to roughly 90,000 jobs."

"China is the world's largest producer of batteries and battery inputs, including refined lithium, cathodes and anodes. Even where the UK sources battery cells from Europe or Japan, the report notes that many of those manufacturers themselves rely on Chinese raw materials, leaving Britain indirectly exposed. By 2030, the IPPR estimates that 47% of UK battery cell demand will still be met through imports. For cathodes, that figure rises to 80%, while anodes are expected to be entirely imported."

Britain's reliance on Chinese battery materials and components creates high exposure to supply shocks. Modeled disruptions to Chinese battery manufacturing and processing could cut UK battery and car production by nearly half. Around 67,000 jobs in EV manufacturing, 8,000 in battery production and almost 15,000 roles across the wider supply chain are at risk, roughly 90,000 jobs total. By 2030, 47% of UK battery cell demand is projected to be met by imports, cathodes 80%, and anodes entirely imported. A one-year interruption could reduce battery output by 50%, causing about 583,000 fewer EVs built.

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