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Highlights
- Grants for electric vehicles (EVs) have been cut down by the UK Government for the second time in a year.
- The outraged car industry has called for the redesigning of car taxation.
- Amid the soaring fuel prices, the demand for electric cars has been increasing.
The outraged car industry has called for the redesigning of car taxation as grants for electric vehicles (EVs) have been cut down by the UK Government for the second time in a year. Falling down to £1,500 from to £2,500, the grant available for EVs would now be half of what was available at the year’s start. For the eligible car models, the upper price limit, which stood at £50,000 in March, will now fall down from £35,000 to £32,000. For large vans, the Government is slashing the grants from £6,000 to £5,000, and likewise for small vans it will go down from £3,000 to £2,500.
Amid the soaring fuel prices, the demand for electric cars has been increasing. In November, 19% of the total cars sold in the UK were electric cars. The Boris Johnson government is using a carrot-and-stick approach to by imposing huge fines on carmakers producing more polluting cars while providing tax exemptions and grants to EV makers.
However, the burden on the treasury has been rising with high cost of subsidies. Thus, the grants would eventually have to be phased out while maintaining some incentives for the EV industry to grow.
Here are 5 UK companies powering up the EV revolution that may be impacted by the news.
© 2021 Kalkine Media®
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Ricardo plc (LON: RCDO)
With an expertise in hybrid and electric vehicles, UK-based engineering services firm Ricardo plc offers environmental and strategic consultancy across a wide range of sectors. The market cap of the company stood at £259.45 million as of 15 December 2021. It has given a return of 23.77% to its shareholders in the last one year and its year-to-date return stands at 23.77% as of 15 December 2021. Ricardo plc’s shares closed at GBX 426.00 as of 16 December 2021.
AB Dynamics PLC (LON: ABDP)
Leading UK-based company Ab Dynamics PLC, which has a specialisation in automotive test systems, has been focusing on testing EVs. It is a constituent of the FTSE AIM 100 index. The market cap of the company stood at £404.98 million as of 15 December 2021. It has given a return of 1.61% to its shareholders in the last one year and its year-to-date return stands at -10.43% as of 15 December 2021. AB Dynamics PLC’s shares closed at GBX 1,840.00 as of 16 December 2021.
Johnson Matthey PLC (LON: JMAT)
UK-based chemicals company Johnson Matthey PLC specialises in providing sustainable technology solutions worldwide, while focusing on EV battery materials. It is a constituent of the FTSE 100 index. The market cap of the company stood at £3,791.32 million as of 15 December 2021. It has given a return of -21.89% to its shareholders in the last one year and its year-to-date return stands at -19.22% as of 15 December 2021. Johnson Matthey PLC’s shares closed at GBX 1,992.00 as of 16 December 2021.
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Bacanora Lithium PLC (LON: BCN)
UK-based company Bacanora Lithium PLC is engaged in the exploration and development of lithium, which is critical component for the EV industry. The market cap of the company stood at £242.97 million as of 15 December 2021. It has given a return of 34.57% to its shareholders in the last one year and its year-to-date return stands at 0.40% as of 15 December 2021. Bacanora Lithium PLC’s shares closed at GBX 63.50 as of 16 December 2021.
Glencore PLC (LON: GLEN)
With operations across the globe, Glencore plc is an Anglo-Swiss commodity trading and mining giant which has started getting into the EV battery business. It is a constituent of the FTSE 100 index. The market cap of the company stood at £47,339.92 million as of 15 December 2021. It has given a return of 49.08% to its shareholders in the last one year and its year-to-date return stands at 53.82% as of 15 December 2021. Glencore plc’s shares closed at GBX 358.40 as of 15 December 2021.
