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Britain’s nascent EV sector hopes for a boost from Sunak and Biden talks

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Plug-in hybrid cars emit far more carbon dioxide than advertised, new research published today shows, just days after the government decided to allow sales of such vehicles to continue to 2035.

The UK’s electric vehicle sector is hoping for some good news from the two-day meeting between Prime Minister Rishi Sunak and US President Joe Biden, who are set to announce closer economic ties between the two nations this week.

Biden is expected to offer new trading arrangements to help the UK’s struggling EV division compete with US manufacturers, in the form of a critical minerals agreement, according to reports.

The meeting comes after the UK’s nascent EV industry has raised concerns about Biden’s Inflation Reduction Act (IRA), which is currently offering hundreds of billions of dollars in subsidies for electric vehicles produced in America.

It also comes at a pivotal moment for Britain’s electric industry, with an announcement confirming that a new multi-billion pound JLR gigafactory will be located in Somerset rather than Spain expected this week.

The new battery plant has been touted as essential in enabling the UK to stay competitive in the EV race.

Experts from the UK’s automotive and renewables sector contacted welcomed the news of Sunak’s visit and imminent trade concessions, but cautioned that the UK must invest in its own EV manufacturing capability.

A spokesperson from the Association For Renewable Energy and Clean Technology said: “The news that the Government is looking to negotiate a critical minerals agreement with the US which will provide the same tax credits in the US as US companies is welcome and will help prevent more UK based companies relocating their head offices to the US.”

“The Government must urgently therefore look to attract investment in Giga Factories across the UK, and with the announcement that Tata are looking at building one soon, we urge the Government to make the UK an attractive place for this significant investment. This will lower emissions in the supply chain, particularly as our grid is rapidly decarbonising and provide much needed supply chain security.”

The spokesperson added: “We encourage the Government to examine ways to lower the cost of purchasing an EV. Currently the US offers $7500 of support for EV buyers of US made vehicles and we urge the Government to examine similar ways to boost the attractiveness of the UK market and enable a greater number of people to afford an EV now.”

Hugo Griffiths, automotive expert at Carwow said: “That our friends on the other side of the Atlantic are potentially willing to smooth the wrinkles created by hefty discounts given to US-built EVs is a hugely positive omen for the UK’s ambitious battery and electric-car-manufacturing plans.”

“Now all we’ve got to do is get the battery plants built here, and ensure manufacturers feel the UK is the right home for their electric-car factories now, and for the next few decades.”