There have been interesting comments from Stellantis (the owners of Vauxhall, Peugeot, Citroen and Fiat) regarding the state of electric vehicle (EV) manufacturing in the UK, and the risk of the UK losing out unless there is immediate investment in domestic battery manufacturing.
The issue is if batteries cannot be sourced in the UK or EU, manufacturers of EVs such as Stellantis will face customs tariffs from next year, which will impact their competitiveness in the global market. It is clear that supply chains are still being impacted by the lasting effects of the pandemic and the more recent energy crisis. The US in particular is investing heavily in battery manufacturing and the suggestion is that the UK must now invest in a similar vein.
Supply chain issues impact businesses in a variety of ways. Get in touch to discuss the VAT and customs implications if your business is facing challenges and is considering a supply chain restructure.
"If the cost of electric vehicle manufacturing in the UK becomes uncompetitive and unsustainable, operations will close," Stellantis said.