There has been speculation for a few months and Blyth was mentioned though not sure why.Car giant Nissan is reportedly in advanced talks to build a huge electric car battery plant in the UK. Nissan 'in talks to build huge UK battery factory'
Ermmm did we not previously already have tariff free access to the EU for our cars and a trade deal with Japan?A lot of this stuff is in the context of a favourable brexit deal for car manufacturers and demand for huge volumes of cells to be made in the UK.
Being dependant on China, EU countries the States or anyone else really is not a good option. If you are going to make cars in any volume in the future you are going to need huge volumes of indigenously produced batteries.
There will be a lot of government support for this now as well. Far more than would have been possible if we had stayed in the EU.
It's no surprise Musk is sniffing round now we have tarrif free access for car exports to EU. We will probably end up with very favourable deals with right hand drive markets like Australia as well . Tarrifs are already being phased out with Japan as part of our deal with them (And also the EU's deal with Japan)
The last paper I saw on UK battery demand suggested we would need at least 5 gigabattery plants just to satisfy our existing vehicle production capacity. Who is going to build and own the factories ? You can't just import all these cells. They make up 40% of the value of the vehicles. You leave yourself wide open to huge price hikes or constraint of supply.
The government has created a very favourable environment for investment in plant in the UK in the next few years, I expect there to be a few big announcements in this area before long.
Yes but it was far from certain to continue for the last 4 years. These are huge investments that require certainty and stability.Ermmm did we not previously already have tariff free access to the EU for our cars and a trade deal with Japan?
And do the EU and Japanese manufacturers not also benefit from reciprocal access to our market?
Well yes the uncertainty of the last 5 years was a big drag on investment. I'm still not sure this is particularly positive. In order to continue in the UK companies like Nissan will need to have higher locally sourced content and in particular batteries, hence the announcement.Yes but it was far from certain to continue for the last 4 years. These are huge investments that require certainty and stability.
For a long time it seemed we would end up with a WTO deal with Europe. Who is going to spend billions on new plant in UK if this was the case ?
You don't seem to understand the issues surrounding this. Yes we had that arrangement historically.
We also have the same arrangement now.
But it seemed very unlikely this would be the case for the last 4 years or so making big investment decisions like this impossible over this period.
Now we have certainty for the first time in years these sort of big investments can be made again.
So another success for Brexit!Previously Nissan could import batteries from the US for the Leaf e+, pay any import duty on them set by the EU Single Market external tariff, and then sell the cars free of duty into the EU. Now, they need to show that the cars have sufficient EU or British content, and apparently the e+ wouldn’t have qualified. So they need to source the batteries in the U.K./EU.
Exactly. Impossible to argue it's not beneficial to reshore production of components with all the extra employment , investment and taxs it will create .So another success for Brexit!
Whilst I know there have been some hairy moments over the last 4 years or so, it finally looks like we are getting the benefits of leaving the EU. Long may it continue!