Tuesday, 22 August 2023

Electric Cars, Bungs, And Reality

Over-hyped, over-subsidised and perhaps over here, much has been made of the decision by Tata Group to build a new electric vehicle battery plant on the Gravity Business Park near Bridgwater in Somerset, a site close to the M5. Our brave, adventurous and not desperate at all, honestly, Government has secured the investment. But this has come at a considerable price.

Sites for battery plants - Gravity business park near Bridgwater ...

As the BBC reported at the time, “In the case of Tata's new plant, the UK's expected success has not been easily or cheaply won … The government has said that while it does not recognise a figure of £500m in reported subsidies, they concede that it is in the hundreds of millions of pounds”.

Do go on. “This would take the form of cash grants, energy subsidies and other training and research funding … India’s Tata has extensive steel interests in the UK including the Port Talbot plant in South Wales and the government will also offer around £300m to subsidise, upgrade, and decarbonise those operations … Along with additional energy discounts, it will bring the total incentive package to Tata close to £800m”. Ker-Ching!

There was more. “Government sources conceded that while the two investments will not be announced at the same time, the two projects are linked … Although the price tag will be seen as high, the UK is reluctantly involved in an international subsidy war which has been dramatically escalated by the US Inflation Reduction Act”. And what of the EU?

The EU is preparing its own package in response … the UK … currently only has one [battery] plant in operation next to Nissan's Sunderland factory, and one barely on the drawing board in Northumberland … By contrast the EU has 35 plants open, under construction or planned”. Like where, perchance?

Like Sines (pronounced “Sin-esh”), which is situated on Portugal’s Alentejo coast. Apart from being the town where Vasco da Gama was christened, Sines hosts sandy beaches, a fishing harbour, and is an important port town, so important that the new Évora to Elvas rail line has been built partly to enable better transport access between Sines and Spain.

... versus the Port of Sines

It is also the site chosen by China Aviation Lithium Battery Technology, or CALB, for its new electric vehicle battery plant, which is scheduled to be in production by 2025 … “with the objective of answering the company’s current order backlog on the European continent. It should be the biggest CALB factory in Europe … The manufacturer estimates that the Sines factory has the potential to ‘represent circa 4% of the Portuguese GDP’”.

More importantly, and just to put the Tata Group bung in perspective, “China Aviation Lithium Battery Technology (CALB), which will be producing lithium batteries in Sines, hailed the deal signed between the automotive manufacturers Xpeng and Volkswagen, considering it ‘an opportunity’ for the battery maker”. And why should this be significant?

Here’s why. “CALB, which is part of the top 5 largest constructors in the world for electric vehicle batteries, is the main supplier of Xpeng … On July 27th, Volkswagen announced the acquisition of a 4.99% share in the Chinese Xpeng brand for 630 million euros for the joint development of electric vehicles”. What will the joint development involve, exactly?

The document indicated that the brands will be developing two electric models together for the Chinese market, which should begin production in 2026”. Volkswagen Group already has a manufacturing site not far from Sines - VW Autoeuropa, which currently produces the T-Roc, is located at Penalva, in the Palmela district. It is, like the port of Sines, rail connected.

Is the Tata Group plant going to gain this distinction, or will the Tories extend their growing reputation as rail-haters which already has the apparently timeless strike actions to its credit (debit?), actions that could have been settled at rather lower cost than “toughing it out” will involve?

The Tories are handing out bungs. The rest of Europe gets on with business.


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7 comments:

  1. A Cocknee Taxi Driver Rites22 August 2023 at 14:27

    Tata?

    Muslamic forrins innit.

    Gawd sive King Charlie an future King Billy.

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  2. Burlington Bertie from Bow22 August 2023 at 16:14


    As in Rites said Fred, me old pigeon-botherer, eh?

    Tim, I think it's high time we hit back at these EU carmaker Johnnies with the launch of a new, 21st century e-Metro, i-Allegro and self-driving Ital range backed up with a lavish multi-platform ad campaign featuring a pantheon of iconic Brits including, for example, Princess Kate, Jim Davidson and Dame Anna Neagle, to name but a few.

    The cars could be assembled in a new brownfield dedicated state-of-the-art factory facility somewhere in the North-West so that appreciative local residents could be first in the queue as they rolled off the production line.

    It would be the icing on the cake of the Govt's flagship Levelling-Up policy and one in the eye to those naysaying Remoaners in those Red Wall seats whose citizens voted so wisely to Back Britain and Get Brexit Done.
    What do you think?

    British Mohtahs for British Voatahs as we like to say in Bow.



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  3. The Gravity site was formerly the Royal Ordnance Factory, Puriton. The site actually has a rail spur into it from the nearby main line, which never appeared on OS maps until the site closed. Nearby rivers were reworked to act as reservoirs, and a water course was dug to the factory from the Huntspill River. Gravity is a fucking stupid developer’s name…

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  4. When an economic power is reduced to begging to get foreign businesses building plants on their land, it is no longer an economic power.

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  5. A Cocknee Taxi Driver Rites22 August 2023 at 19:09

    I ad the Kray twins an Lord Boothby in the backer me cab once. Proper gents they woz. Offered to warm me feet wen I told em the fare, so I letem orf.

    Dey new owta empty leccy meters so deyd sort dis battry stuff eezy.

    Ere, gav. Wonna buy a second and cab. Guaranteed t'beat all the ULEZ stuff an bad air.

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  6. Burlington Bertie from Bow22 August 2023 at 21:40

    Given that it was Boothby and the Krays, me old whippet-hugger, and given what the word on the street down here in Bow was as to what you might call their *proclivities*, are you sure you had *them* in the back of the cab; or did they, in fact, have *you*?

    (If the usual suspects can't understand what I'm on about here, then, for a change, it reflects very well on them).

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  7. A Cocknee Taxi Driver Rites23 August 2023 at 13:25

    Ere. Wot's orl dis abaht uggn an wips. Der woz nonna that in MY cab, lavvly darlin men them Krays an me lawd Boothby wudn do dat der warraver the heenis gossip.

    Ennywye, me new cab's leccy an dey wudv gorra shock, nevermind breathn the air.

    Gawd bless Kween Camel. A lavvly lydee er innit.

    ReplyDelete