Tens of thousands of jobs could be lost if the UK\u2019s clean energy supply chains were to suffer a shock as a result of an over-reliance on China, a left-leaning thinktank has warned.<\/p>\n
A year-long disruption to the supply of essential battery components used to manufacture electric vehicles could wipe out production of more than 580,000 electric cars and endanger 90,000 jobs, according to the Institute for Public Policy Research.<\/p>\n
A delay to the supply of solar components and batteries could also delay the rollout of solar farms, the IPPR added, putting the UK\u2019s clean energy goals at risk and costing the economy an extra \u00a31.5bn a year by keeping the UK reliant on expensive gas generation.<\/p>\n
Its report underlines growing concerns over the UK\u2019s reliance on Chinese supply chains amid widespread geopolitical upheaval after the Covid-19 pandemic, including a halt of Russian gas supplies and escalating global trade tensions<\/a>.<\/p>\n \u201cThe world\u2019s over-reliance on China exacerbates these risks,\u201d the report said. \u201cEighty to ninety per cent of global refining for critical minerals is controlled by China. Relying on a single source of supply leaves the UK and our allies more vulnerable to geopolitical and economic shocks.\u201d<\/p>\n The thinktank has called on the chancellor, Rachel Reeves, to pursue a policy of \u201csecuronomics\u201d through greater international investment and partnership.<\/p>\n \u201cThe UK is a small open trading nation sailing through an international economy whose waters are getting choppier by the day,\u201d Pranesh Narayanan, a senior research fellow at IPPR and an author of the report, said.<\/p>\n \u201c[Donald] Trump\u2019s trade war with China, the rise of conflicts around the world \u2013 these shocks ultimately hurt the UK economy because we rely so much on trade to source the essentials, including clean energy technologies.\u201d<\/p>\n Laura Chappell, the IPPR\u2019s associate director for international policy, said: \u201cDiplomats should be working to build partnerships that will underpin Britain\u2019s future energy security. These can be win-wins, supporting the UK and its partners to make the most of their resources, generating jobs and growth.\u201d<\/p>\n China is the global leader in manufacturing electronic technologies, including components that are essential in renewable energy projects. The world\u2019s second-largest economy reported a record trillion-dollar global trade surplus<\/a> last year, even as the Trump administration sought to slow the manufacturing powerhouse by imposing trade tariffs designed to shift US orders to other markets.<\/p>\n Economists expect China to continue gaining global market share this year, helped by Chinese firms setting up overseas production hubs that provide lower-tariff access to the US and EU, as well as by ongoing strong demand for lower-grade chips and other electronics.<\/p>\n However, Beijing has also shown signs of recognising it must temper its industrial exports to address the imbalances in China\u2019s economy \u2013 and the image problem its export volumes are causing among its global trade partners.<\/p>\n