Over-reliance on China could hit UK energy supply chains putting 90,00 jobs at risk'

"Tens of thousands of jobs could be lost if the UK's clean energy supply chains were to suffer a shock as a result of an over-reliance on China, a left-leaning thinktank has warned. A year-long disruption to the supply of essential battery components used to manufacture electric vehicles could wipe out production of more than 580,000 electric cars and endanger 90,000 jobs, according to the Institute for Public Policy Research."

"Its report underlines growing concerns over the UK's reliance on Chinese supply chains amid widespread geopolitical upheaval after the Covid-19 pandemic, including a halt of Russian gas supplies and escalating global trade tensions. The world's over-reliance on China exacerbates these risks, the report said. Eighty to ninety per cent of global refining for critical minerals is controlled by China. Relying on a single source of supply leaves the UK and our allies more vulnerable to geopolitical and economic shocks."

"The UK is a small open trading nation sailing through an international economy whose waters are getting choppier by the day, Pranesh Narayanan, a senior research fellow at IPPR and an author of the report, said. [Donald] Trump's trade war with China, the rise of conflicts around the world these shocks ultimately hurt the UK economy because we rely so much on trade to source the essentials, including clean energy technologies."

Tens of thousands of jobs could be lost if UK clean energy supply chains suffer shocks from over-reliance on a single supplier. A year-long disruption to essential battery components could wipe out production of more than 580,000 electric cars and endanger 90,000 jobs. Delays to solar component and battery supplies could postpone solar farm rollouts, keep the UK reliant on expensive gas generation, and cost the economy an extra 1.5bn a year. Eighty to ninety per cent of global refining for critical minerals is controlled by China, increasing vulnerability to geopolitical and economic shocks. Policy responses should prioritise international investment, partnerships, and diplomatic efforts to diversify supply and underpin energy security.

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