The United Kingdom and the United States have announced the Atlantic Declaration – a first-of-its-kind economic partnership between the two nations to strengthen technological, energy, and electric vehicle capabilities.
The Atlantic Declaration sees the two countries work closer than ever to overcome urgent challenges, such as increasing energy security, combatting the climate crisis, strengthening critical raw materials supply chain, and boosting technology development.
The UK already has a trading relationship with the US worth £279bn annually and shared investments of more than £1tr. The action plan for the Atlantic Declaration outlines measures to provide significant growth.
UK Prime Minister Rishi Sunak commented: “The UK and US have always pushed the boundaries of what two countries can achieve together. Over generations, we have fought alongside one another, shared intelligence we don’t share with anyone else, and built the strongest investment relationship in world history.
“So it’s natural that, when faced with the greatest transformation in our economies since the industrial revolution, we would look to each other to build a stronger economic future together.
“The Atlantic Declaration sets a new standard for economic cooperation, propelling our economies into the future so we can protect our people, create jobs and grow our economies together.”
United. pic.twitter.com/UwKNT4ucvW
— President Biden (@POTUS) June 8, 2023
How will the Atlantic Declaration advance technological capabilities?
The world is undergoing the greatest technological transition since the industrial revolution, with emerging technology such as AI and biotechnology changing many aspects of our lives.
The Atlantic Declaration will strengthen research collaboration to put the UK and US and the forefront of vital future technologies, including AI, 6G, quantum, semiconductors, and engineering biology.
The nations will also ramp up efforts to ensure the safe and responsible development of AI, which will be reinforced by an international summit on AI safety which will be hosted in the UK later this year.
Additionally, technology supply chains will be enhanced through sharing analysis and deepening channels for rapid coordination.
A new UK-US Data Bridge will make it easier for around 55,000 UK businesses to freely transfer data to certified US organisations – saving an estimated £92.4m in direct savings annually.
Plans to accelerate decarbonisation
To grow clean energy and stop Russia from dominating the civil nuclear power market globally, the UK is launching a new civil nuclear partnership under the Atlantic Declaration.
The Declaration will also help forge a new Critical Minerals Agreement, enabling people who buy vehicles made from critical minerals that are processed or mined by UK companies to benefit from tax credits under the US Inflation Reduction Act.
The Act provides a $3,750 incentive for each vehicle on the basis that critical minerals used in its production are sourced from the US or a country that the US has a critical minerals agreement.
The UK is already a net exporter of EV battery raw materials – with leading companies located across the country, such as nickel production in Wales and lithium processing in Teesside.
Companies such as these that specialise in the mining, recycling and refining of critical minerals will benefit from the Atlantic Agreement by further supplying US electric vehicle and battery manufacturers.
