Britain’s ambition to scale up electric vehicle production has hit a practical roadblock. Industry leaders warn that building battery gigafactories in the UK takes far longer and costs far more than in China, raising fresh doubts about how quickly the country can generate a local battery industry to support the EV transition.
How long construction really takes: UK compared to China and India
At the SMMT International Automotive Summit 2026, Agratas procurement chief Karthik Selvan laid out stark timelines. He said typical gigafactory construction in China finishes in about a year.
- China: roughly 12–18 months.
- India: around 24–36 months.
- UK: usually 36–48 months.
Those gaps matter. Longer build times postpone production, delay local supply chains and increase exposure to cost inflation.
Why UK projects cost so much more
Selvan told delegates the price difference is dramatic. He estimated an identical plant would cost multiple times more to build in Britain than in China.
Estimated cost uplift: between three and four times higher in the UK, according to his remarks.
Energy bills are a major factor. Selvan highlighted that electricity is far more expensive in the UK than in competing markets.
- Higher energy rates raise operating expenses for power-hungry battery plants.
- Complex regulation and permitting add time and consultancy fees.
- Local construction and materials costs push capital expenditure up.
Grid, permits and project execution: hidden obstacles
Beyond headline costs, several practical hurdles inflate schedules.
- Delays in connecting to the electricity grid stall commissioning.
- Planning and permit processes can be slow and fragmented.
- Frequent design changes during construction lead to overruns.
Selvan argued that grid connections should be treated as a national priority, not just a routine infrastructure task. Without faster delivery, factories cannot start on time.
Skills and contractor capability: a missing link
Building a gigafactory requires multiple engineering disciplines. The UK has strong firms in heavy civil work and separate teams skilled in process design.
But, there are few contractors with proven integration expertise. That integration gap forces project owners to coordinate more, adding cost and risk.
Changing layouts or specifications once on-site is one of the biggest causes of runaway budgets, Selvan said.
Material dependence and supply-chain vulnerability
Even after construction, battery production depends on raw materials and components. Europe and the UK remain heavily reliant on Asian suppliers for many critical inputs.
- Lithium, nickel and other feedstocks are still sourced predominantly from abroad.
- Local processing capacity is only beginning to develop.
- Introducing strict local sourcing rules too soon could raise overall costs.
A resilient gigafactory must combine assembly with upstream material capability, Selvan said, to avoid exposure to volatile global markets.
Policy choices investors will watch
Industry leaders say the UK must sharpen execution to attract capital for gigafactories. That is easier said than done.
- Speed up planning and reduce red tape for strategic energy connections.
- Address high industrial energy prices or offer targeted relief.
- Support contractor capability building for integrated projects.
- Phase in local content rules only as domestic supply chains mature.
Without these steps, the UK risks losing out to regions that build faster and cheaper.
Voices from the summit and what they revealed
Karthik Selvan, Chief Procurement Officer at Agratas, used the platform to warn that the UK faces structural disadvantages.
He urged officials and industry to focus on execution and capability development. Investors, he suggested, will be sensitive to timeframes and predictable costs.
Key warning: the combination of slow build times, high energy costs and limited integration skills could stifle the growth of a UK battery industry unless policymakers act swiftly.
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