"Britain's ability to compete as an EV production leader is at risk unless government responds urgently to increasingly fierce international competition," Britain’s Society of Motor Manufacturers and Traders said in the report, which outlined a series of steps it deemed necessary to help its automakers compete.
The report comes just days after European Commission President Ursula von der Leyen and President Joe Biden announced at the White House Friday that the two sides will begin negotiations on a “targeted critical minerals agreement” to allow minerals extracted or processed in the EU to qualify for EV tax credits included in the Inflation Reduction Act, the Democratic legislation passed last year that includes major subsidies that are tied to domestic production.
The Inflation Reduction Act had driven a wedge between Washington and Brussels ever since its passage last August, with EU leaders viewing the law’s “Made in America” provision as discriminatory and a potential violation of international trade laws. Other countries, such as South Korea, have also voiced concern.