The UK’s electric vehicle (EV) battery manufacturing sector has secured over £7 billion in investment across 14 major commercial projects, according to a new report by transport research organization New AutoMotive. This substantial investment highlights the UK’s emerging role in the global EV battery market.
The analysis, titled “The UK’s EV Battery Economy: A strategic review of the UK’s battery manufacturing sector”, showcases the country’s diverse battery ecosystem, encompassing lithium extraction, chemical refining, large-scale cell gigafactories (massive factories producing battery cells), and next-generation battery recycling. This wide-ranging approach supports a domestic supply chain, reducing reliance on external sources.
A growing industry with significant impact
The UK’s battery supply chain already generates £4.2 billion annually and supports over 10,000 direct, high-value jobs across regional industrial hubs. With the UK EV fleet exceeding two million vehicles and electric cars capturing a 30% monthly market share, the country possesses a growing reservoir of critical minerals. Domestic hydrometallurgical recyclers like Altilium (Plymouth, expanding to Teesside) and Recyclus Group (Wolverhampton) recover over 95% of materials like lithium, nickel, and cobalt from old EV batteries, achieving 50% lower carbon emissions compared to virgin mining.
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As Ben Nelmes, CEO of New AutoMotive, states: “The UK has built real momentum in the battery supply chain, securing over £7 billion in investment for projects that will drive our industrial future.” Nelmes warns that delaying or diluting the EV transition would jeopardize this progress.
Meeting future demand and policy implications
By 2035, the UK will require approximately 115 GWh of battery cells annually for domestic automotive production. Confirmed capacity currently stands at around 60 GWh, leaving a gap. The report suggests that providing domestic demand certainty is key to attracting the additional two to three gigafactories needed. Nelmes emphasizes: “Delaying or diluting the EV transition now would directly undermine investor confidence, putting those billions of pounds, thousands of skilled jobs, and our broader competitive edge at risk.” A stable policy framework is vital for securing long-term investments in this critical sector.
