Over-reliance on China could disrupt the UK's energy supply chains, putting 90,000 jobs at risk, warns a left-leaning thinktank. A year-long disruption to the supply of essential battery components for electric vehicles could lead to the loss of 580,000 electric cars and 90,000 jobs, according to the Institute for Public Policy Research (IPPR). Delays in solar component and battery supply could also hinder the rollout of solar farms, putting the UK's clean energy goals at risk and costing the economy an extra £1.5 billion annually by relying on expensive gas generation. This concern is part of a broader issue of the UK's over-reliance on Chinese supply chains, which has been exacerbated by geopolitical upheaval post-COVID-19, including the halt of Russian gas supplies and escalating global trade tensions. The report emphasizes that China's control over 80-90% of global refining for critical minerals leaves the UK and its allies vulnerable to economic and geopolitical shocks. To address this, the IPPR advocates for a policy of 'securonomics' through increased international investment and partnership. Pranesh Narayanan, a senior research fellow at IPPR, highlights the UK's small open trading status and its vulnerability to global economic shocks due to heavy reliance on trade for essential goods, including clean energy technologies. Laura Chappell, IPPR's associate director for international policy, emphasizes the need for diplomats to build partnerships that support Britain's energy security, creating win-win situations for the UK and its partners. China's dominance in manufacturing electronic technologies, including renewable energy components, is evident in its record trillion-dollar global trade surplus last year, despite efforts by the Trump administration to curb its manufacturing prowess. Economists predict China's continued global market share growth this year, facilitated by overseas production hubs and strong demand for lower-grade electronics. However, Beijing is also recognizing the need to moderate its industrial exports to address economic imbalances and the negative perception among global trade partners. The IPPR recommends that the government clarify its stance on Chinese investment in the UK's clean energy supply chains and invest more in domestic battery and green steel production. Additionally, it suggests working with allies to invest in international stockpiles of solar, batteries, and critical minerals to mitigate supply chain risks. A government spokesperson acknowledges the importance of securing the automotive and clean energy sectors while reducing import dependency and protecting British jobs.
