The UK’s potential vulnerability to its dependence on China for clear tech manufacturing is to be examined in a brand new authorities examine.
The Division for Vitality Safety and Web Zero (DESNZ) has awarded a contract to defence and safety think-tank Royal United Providers Institute (RUSI) to hold out the analysis.
RUSI will look at the UK’s dependency up till 2050 on China for 4 key web zero applied sciences: photo voltaic panels, wind generators, batteries (for vitality storage and electrical autos) and nuclear.
Ramping up deployment of unpolluted vitality applied sciences is important for assembly web zero, says the contract, which was printed final week, however “clear vitality provide chains are extra advanced and concentrated than fossil fuels.”
“The resilience of those provide chains will grow to be more and more very important for the UK’s future vitality and financial safety,” it mentioned.
The DESNZ contract notes analysis from the Worldwide Vitality Company (IEA) highlighting the dominance of China within the processing of vital minerals and within the manufacturing of unpolluted vitality applied sciences.
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Nation’s issues round vitality safety have been heightened since Russia’s invasion of Ukraine sparked a worldwide vitality disaster – with European nations particularly struggling badly as they pulled themselves off dependence on Russian gasoline.
Dependence on China is seen with suspicion given its tough relationship with the West.
“We all know that – given the extent of China’s world management of those applied sciences and their provide chains – the excessive ranges of provide focus creates dangers,” it mentioned.
These dangers embrace “exterior shocks, useful resource nationalism, export restrictions, mineral cartels, political instability and market manipulation.”
The contract notes that the US Inflation Discount Act “explicitly focused decreasing the focus of those provide chains in China, notably round vital minerals, and different companions are contemplating comparable measures.”
It additionally needs to weigh the dangers up towards potential benefits of counting on Chinese language provide, noting that analysis signifies that China is just not abusing its dominant place and economies of scale are permitting for a discount in the price of clear tech.
A authorities spokesperson instructed Recharge: “This analysis will bolster our vitality safety by making certain we establish future dangers and alternatives in provide chains on the earliest doable stage and types a part of our technique to again UK companies, construct resilient provide chains and keep away from overdependencies available in the market.”
