UK chems could benefit from Jaguar Land Rover’s planned EV investment

LONDON (ICIS)–The UK’s chemicals industry could benefit from plans announced on Friday by Jaguar Land Rover (JLR) to manufacture electric vehicles (EVs) at the automobile major’s site in Castle Bromwich.

Charging point in London. Source: Facundo Arrizabalaga/EPA-EFE/Shutterstock

Financial details for the investment were not disclosed.

JLR has not announced either when production will begin at the site, but said the project would sustain the current 2,500-strong workforce at the West Midlands site.

The producer called on other manufacturers and the UK government to attract further gig-factories, the term given to large, high-volume battery manufacturing facilities.

CHEMICALS TO GAIN
The Advanced Propulsion Centre UK (APCUK) released a study in April stating that the UK chemical’s sector could stand to capture $4.8bn/year from the domestic automotive manufacturing supply chain by 2030.

The UK’s Chemical Industries Association (CIA) said to ICIS on Friday that the industry is finalising talks for a sector deal as part of the government’s Industrial Strategy in which a key part would be expansion of battery manufacturing in the UK.

“By working with government we can ensure that not just the production of electric vehicles has a firm footprint in our country, but the supply chain does as well,” said Steve Elliott, the CIA’s CEO.

“Too often we see great products made here but based on every component coming from overseas. This time we can do both and that is good news for the UK and good news for jobs in communities where their impact will be felt the most.”

The Faraday Institute, a UK independent body dedicated to the science of electrochemical energy storage, said in March that EU and UK demand for UK-produced batteries may need between 4 and 13 gig-factories.

“The UK has long-standing experience of the production of EVs in the northeast, and as such the country has both a head start and the ingredients for success,” said the Faraday Institute’s CEO Neil Morris.

“The country has an opportunity to take a leading role in the production of not just electric vehicles, but also the production of battery packs and cells and the associated chemical supply chain. Decisions made now will determine whether we capitalise on that opportunity.”

JLR is also set to install new facilities later this month to support Modular Longitudinal Architecture (MLA) project, which aims for production of cleaner diesel and petrol vehicles alongside full electric and hybrid models.

This would be in line with the firm’s pledge to introduce electrified versions of all existing models by 2020.

JLR had announced in January a project to produce Electric Drive Units (EDU) at its centre in Wolverhampton, also in the UK. The German automobile major BMW became a partner in that venture in June.

The EDUs would be assembled at the 150,000-unit capacity site in Hams Hall in Warwickshire, which is scheduled to become active in 2020.

By keeping its existing site at Castle Bromwich, the UK’s largest automotive manufacturer would be showing its commitment to the country’s automobile industry despite ongoing Brexit concerns.

If the UK exited the EU without a withdrawal deal in October, tariffs to automobiles produced in the the country and sent to the rest of the EU – the largest market for UK car makers – could be in place and reduce trade.

Earlier this year, US automobile major Ford announced it was to close its plant for production of engines in Bridgend, UK, by the end of 2020.

Focus article by Morgan Condon

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