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Gigafactory: the Future of UK Automotive Production Coventry & Warwickshire 2 / Gigafactory: the Future of UK Automotive Production / Coventry & Warwickshire

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Gigafactory: the Future of UK Automotive Production Coventry & Warwickshire 2 / Gigafactory: the Future of UK Automotive Production / Coventry & Warwickshire Gigafactory: the future of UK automotive production Coventry & Warwickshire 2 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire The whole of the West Midlands is now a global centre of battery technology and batteries for EVs, “ “ and that is the vision of Mayor Andy Street, and we will back that vision. This is a government that backs Britain and believes in British innovation. - Prime Minister Boris Johnson, June 2020 4 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire Foreword If the UK is to lead the world in green If the UK is to secure a Gigafactory for technology, whilst protecting and battery production, the West Midlands is creating automotive jobs, we must the obvious location to take advantage secure investment in a Gigafactory. of a mature automotive ecosystem. Every corner of the West Midlands The West Midlands is already the home will benefit, and beyond. of the UK automotive sector, with a powerful automotive cluster. Within We have the ecosystem in place, we the region, Coventry & Warwickshire have the commercial understanding, has emerged as a centre of excellence we have the land, and we have the for battery technology, home to Jaguar experience. Land Rover’s global headquarters and the UK Battery Industrialisation Centre (UKBIC). 6 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire “The West Midlands has long been world- famous for its automotive sector and we are fast becoming a centre of excellence in electric vehicle technology and battery “ production. To build on this and secure our competitive edge, we must now invest in bringing a Gigafactory to the region. - Andy Street, Mayor of the West Midlands Coventry“ & Warwickshire is leading the way in next generation automotive technologies, and in UKBIC we are already supporting the delivery of cutting edge battery technology. A Gigafactory in Coventry & Warwickshire would “ immediately plug-in to this mature ecosystem and become a fantastic asset “Coventry City Council is proud to for UK PLC. be a central part of the powerful West Midlands automotive cluster. - Nick Abell, Chair, Coventry & In JLR, LEVC and others our area is Warwickshire Local Enterprise Partnership home to some of the world’s leading “ (CWLEP) automotive brands and we have a proud manufacturing history. We are now ready to lead the green industrial revolution. - Cllr George Duggins, Leader, Coventry City Council 8 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire The UK has a golden opportunity to secure its position as a global leader in automotive manufacturing for the next century The transfer to fully electric vehicles is and difficult to transport. Future happening now. This is both an existential manufacturing and supply chains will threat to the UK’s automotive sector, be fundamentally re-configured – and and a once in a century opportunity potentially re-located – in response to to take a global lead in automotive the location of a Gigafactory. technology. We have a golden opportunity to Driven by Government policy, and a make the UK a scientific superpower target to reach Net Zero by 2050, sales by investing in battery and electric of petrol and diesel cars are likely to vehicle manufacturing, leading the end by 2035.1 This means decisions development of technologies to support which will impact future automotive Net Zero by 2050, strengthening the production are being made today. Covid-19 recovery by protecting and creating green jobs and skills, and Within an electric vehicle, the battery securing our position as a global leader makes up 40% of the overall value of in automotive manufacturing. the car. Batteries are also expensive 10 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire Job creation will only outpace job losses if the UK secures electric vehicle and battery manufacturing According to the Faraday Institution, a Like the UK Government, our European leading national independent research competitors are already working to institute, without a UK Gigafactory to secure and grow their own battery produce batteries and support wider industries. Germany, Sweden, Poland, electric vehicle manufacturing, direct and Hungary have already created automotive employment is predicted favourable conditions for battery to be 105,000 jobs fewer in 2040 than manufacturing. it otherwise would be. Major Gigafactory investments have Alternatively, by investing in battery already been made by LG Chem in manufacturing – including a Gigafactory Wroclaw, Poland and by CATL in – in the UK, the overall workforce within Thuringia, Germany. The regions which automotive and battery technology can respond best to this challenge will is expected to grow by 29% by 2040, reap huge rewards as we move into a creating 78,000 new jobs.2 new age of electric vehicle technology. 12 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire The UK risks being left behind in the race for battery technology. The time to act is now Without urgent action, the UK is in The UK Government has also made danger of losing out in the global race several important commitments. This to develop electric vehicle batteries includes investment in the Faraday at scale. Of the five major automotive Battery Challenge, through the UK manufacturers in the UK (Nissan, Jaguar Battery Industrialisation Centre (UKBIC) Land Rover, BMW Mini, Vauxhall and located in Coventry. Toyota) there is currently no indication that any are guaranteed to establish Plans for a Gigafactory were also set their European battery supply in the UK. out in the Conservative Party Manifesto 2019. If these manufacturers were to enter long-term relationships with overseas providers, not only would the UK miss out on around £12bn of investment it is also likely that, over time, re-configured supply chains would deplete the UK automotive sector.3 The private sector is playing its part. Jaguar Land Rover is investing close to £1bn to manufacture electric cars in the West Midlands4, whilst Geely has already invested £320m in Coventry & Warwickshire to create the UK’s first purpose-built factory for electric vehicles. 14 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire In the region of Estimated 46,500 Estimated 1 in 4 £3.2bn 1/3 UK engines produced in West Midlands Automotive of all cars produced in UK GVA West Midlands Sector employees built in the West Midlands The West Midlands is the beating heart of the UK automotive sector – its past, present and future The West Midlands has a proud history A third of all cars produced in the UK of automotive excellence and remains come from West Midlands’ production the beating heart of the UK automotive lines, as well as 1 in 4 engines, and sector. 40% of UK exports are made in the region. A powerful future mobility automotive cluster continues today, with globally We are home to 20 vehicle manufacturing significant research and development for sites and 35 automotive and off-highway electric vehicles, low carbon powertrain, OEM brands, whilst 21.2% of all the autonomous vehicle technology, vehicle UK’s automotive parts and accessories manufacture, design, and development. manufacturers are situated in the West Our automotive sector employs almost Midlands – the most of any UK region. 46,500 people and GVA is estimated at £3.2bn. 16 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire Our automotive supply chain is already designing and manufacturing the latest engineering technology. Now, we are ready to shape the future Jaguar Land Rover has pledged that Connected Autonomous Vehicle every car launched from 2020 will be trials have taken place in the region, electrified, with the all-electric XJ to including the UK’s first multi-OEM be manufactured at Castle Bromwich.5 self-driving vehicles in Coventry City Meanwhile, the JLR Battery Assembly Centre; Jaguar Land Rover and TATA Centre at Hams Hall, near Birmingham, Motors’ fully self-driving navigation will be operational in 2020.6 around Coventry ring-road; freight vehicle communication with traffic The West Midlands is rapidly building signals in Birmingham; and last mile specialisms in future mobility slow speed pods at various locations technologies. As the UK’s first multi- across the region. city testbed for 5G technology – vital for driverless vehicles – we are already The West Midlands has also been chosen positioned to support the next generation as the UK’s first Future Mobility Zone, of transport solutions. which aims to support the transition from research and development to integration of technology in everyday life. 18 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire Positioned at the heart of the UK, with excellent connectivity, the West Midlands is the obvious choice for Gigafactory investment A powerful automotive cluster has be improved further by HS2 – delivering emerged in the West Midlands, partly due faster, more reliable connections to to the region’s location at the heart of London, North of England, Scotland, the UK and wealth of excellent transport and Europe. links. By road, rail, or air, our region is easily accessible to people and goods. For freight, the West Midlands is home to four major rail freight terminals At the centre of a connected transport (Birmingham Freightliner, BIFT, Hams network, the West Midlands is within Hall and DIRFT) with daily services to a four-hour travel time for 90% of the the UK’s largest ports. Our region is also UK population. The region is served a short distance from East Midlands by the UK’s fastest growing airport at Airport, the UK’s busiest pure cargo Birmingham, with transport links set to airport handling over 328,000 tonnes of cargo each year, second only to Heathrow. 20 / Gigafactory: the future of UK automotive production / Coventry & Warwickshire Our region has the automotive skills to succeed, and the ambition to do even more The West Midlands is already a global The region is already home to 28% of centre of automotive research and the UK’s automotive talent, with the development.
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