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Birmingham Post
Birmingham Post
Business
Jon Robinson & Neil Lancefield

Supply of electric car batteries 'key' to survival of Vauxhall's Ellesmere Port factory

A "key component" in the survival of Vauxhall's Ellesmere Port factory is the domestic supply of electric car batteries, a senior executive at the automotive giant's parent company has said.

The comments from UK group managing director Alison Jones come as Stellantis is currently reviewing its options for the site, which include building electric cars there or possible closure.

The PA News agency has reported that Ms Jones said the Brexit trade deal includes a requirement for UK manufacturers to source battery materials from within the UK or the EU to avoid tariffs, with the rules tightening in 2023 and 2027.

Asked about how attractive the UK is for building electric cars, she added: "The ability to source batteries close to where you're manufacturing, and then link that to the tariffs that could or could not be imposed as we go forward, is a key component."

She said: "We build carbon calculations into any decision that we make. So that's an important part of it."

There are currently no major electric car battery factories - known as gigafactories - in the UK.

Ms Jones, speaking at a summit held by the Society of Motor Manufacturers and Traders, said the location of customers is also an important factor when Stellantis decides where to build electric cars.

The company is believed to be seeking financial incentives from the Government to begin production of an electric model in Ellesmere Port.

In response to being asked "what is it going to take" for the company to invest in the factory, she replied: "We've had ongoing conversations with the Government, and we continue those conversations," she said.

"I can't say here what they are, but that is part of the equation."

Up to 7,000 workers in the supply chain rely on the plant for their livelihoods, according to union Unite.

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