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Batteries are the most expensive component for electric cars, and most now come from Asia. Europe is the biggest customer by far for British-made cars.
British governments, with their preference for laissez-faire economics, have so far been slower to provide support for a domestic battery industry than the European Union. The 2.9 billion euro fund announced by the European Commission on Tuesday will be distributed among automakers as well as companies that supply battery materials or are working on setting up battery manufacturing.
“We’ve got to have battery production,” said Des Quinn, national officer for the automotive industries at Unite, Britain’s largest labor union. “There is no way carmakers are going to move batteries to the U.K. to build electric cars. They would more likely move production to Europe.”
Even brands with a strong British heritage, like Mini, could pull up roots. Car buyers no longer care that much where their vehicles are built. BMW, which owns Mini, builds versions of the popular compact in China as well as in Britain. Jaguar Land Rover, owned by Tata Motors of India, is the largest car manufacturer in Britain but also has a new factory in Slovakia.
Most carmakers have been noncommittal about the plans for their British operations.
“We look forward to the continued success of our U.K.-based design, engineering and manufacturing operations, which have been serving the European market for more than 30 years,” Nissan said in a statement.
BMW said it welcomed the Brexit deal, but added in a statement: “A complete evaluation of the importance of the treaty can only be undertaken after publication of all the details.”
For fans of British motoring, it’s hard to be optimistic.
“We’re left with just the old part of the industry, internal combustion engines,” said Peter Wells, a professor of business at Cardiff University in Wales. “That’s going to wither away eventually.”
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