Britain’s car industry has been on the decline for some time. Last year, production fell to a 66-year low due to the closing of two plants, a global shortage of semiconductors and supply chain bottlenecks.It has also faced an existential challenge as rival governments pledge vast amounts of public funds to the development of electric vehicles.“The reality is that the global battery market is not a free market,” said Andy Palmer, the former chief executive officer of Aston Martin who now chairs Slovak battery maker InoBat. “It is distorted by huge state subsidies and we either recognize that and respond, or see our auto industry slowly deplete.” Britain’s car industry has been on the decline for some time. Last year, production fell to a 66-year low due to the closing of two plants, a global shortage of semiconductors and supply chain bottlenecks. It has also faced an existential challenge as rival governments pledge vast amounts of public funds to the development of electric vehicles.“The reality is that the global battery market is not a free market,” said Andy Palmer, the former chief executive officer of Aston Martin who now chairs Slovak battery maker InoBat. “It is distorted by huge state subsidies and we either recognize that and respond, or see our auto industry slowly deplete.”On Wednesday, however, the outlook brightened. Prime Minister Rishi Sunak flew by helicopter to Warwickshire, in the west Midlands, to hail a new range of electric Jaguar Land Rover vehicles that will be backed by a £4 billion ($5.2 billion) battery factory to be built further south in Somerset.The UK came close to missing out on the new battery plant, with executives at parent company Tata Group considering Spain as an alternative location. Nine months ago, in the wake of Liz Truss’s resignation, financial markets were still reeling from her disastrous mini-Budget and the country had just welcomed its third prime minister in two months. Grant Shapps, who was Business Secretary at the time, received a call from Tata executives to say they wouldn’t be choosing Britain for the plant.
