Stellantis has warned the UK Government that its commitment to build electric vehicles (EVs) in the UK is at risk, unless Brexit trade rules are re-negotiated.

The car maker, which owns 16 car brands, including Vauxhall, said: "If the cost of electric vehicle manufacturing in the UK becomes uncompetitive and unsustainable, operations will close."

In 2021, Stellantis announced it was investing £100 million in Vauxhall’s Ellesmere Port manufacturing plant to create a new electric vehicle (EV) factory. The plant produces commercial and passenger versions of the Vauxhall and Opel Combo-e, Citroen e-Berlingo and Peugeot e-Partner.

In a submission to a Commons inquiry into EV production, Stellantis outlined that its UK investments were centred on meeting the strict terms of the post-Brexit free trade deal.

Until January 1, 2024, the rules stipulate that at least 40% of the content of EVs and 30% of batteries must originate from the EU or the UK.

From 2024 until January 1, 2027, this increases to 45% of the vehicle and 50-60% of batteries. If this is exceeded, carmakers will have to pay a tariff of 10%.

Stellantis said it was "now unable to meet these rules of origin" as a result of the surge in raw materials costs and energy prices.

As a result, the car maker is calling for the Government to reach a new agreement with the EU to keep the current rules as they are until 2027. It also wants arrangements for manufacturing parts in Serbia and Morocco to be reviewed.