According to Bloomberg, British Business Secretary Kemi Badenoch said frankly when talking about the auto industry's dependence on China that the UK is strongly supporting BMW's production of Mini electric cars in Oxford, but does not require batteries to be purchased locally.
BMW recently stated that it will invest 600 million pounds (approximately US$750 million) in a British factory to achieve a fully electric Mini brand by 2030. From 2026, BMW will produce two electric models - the Mini Cooper 3-door car and the compact crossover Mini Aceman - at its Mini plant in Oxford.
Following BMW's announcement, Badenock said the UK would seek to diversify its supply chain as much as possible without blocking parts from specific countries.
When asked whether the UK's electric vehicle supply chain was overly reliant on China, Badenock said: "At the moment, China is leading in this technology, so we cannot achieve the net zero emissions target we want by completely stopping or banning Chinese products. You can't exclude Chinese-made products from the battery ecosystem."
While BMW has yet to finalize its battery sourcing strategy for the next-generation Mini electric car that will be built in Oxford, the company's latest battery-powered model is being developed with Chinese partner Great Wall Motors. Two companies have started assembling electric vehicles in Oxford.
Badenock declined to comment on the criteria for UK subsidies for BMW's investment in Oxford.