The UK needs to rapidly increase investment in domestic battery production to help keep up the predicted increase in demand for electric vehicles (EVs) and full-scale grid storage, according to a report from the Faraday Institution.
B) In November 2023, the UK published its Advanced Manufacturing Plan (‘the Plan’), which includes a £4.5 billion package of targeted funding for manufacturing, tax cuts and business environment measures to make the UK the best place to start and grow a manufacturing business – including battery manufacturing.
Of these, 100,000 would come from battery manufacturing plants and the supply chain, 145,000 from EV production, and 25,000 from HGV/bus production. B) As highlighted in the UK Battery Strategy, recent announcements by AESC as well as Tata-Agratas will increase production by at least 52GWh of capacity by 2026.
‘UK Electric Vehicle and Battery Production Potential to 2040.’ 2022. ↩ McKinsey Battery Insights Team. ‘ Battery 2030: Resilient, Sustainable and Circular.’ 2022. ↩ HM Government. ‘ Transitioning to zero emission cars and vans: 2035 delivery plan. ’ 2021. ↩
Given the high forecast demand for batteries over the coming years, businesses are investing significantly in the UK battery supply chain. In 2023, we have already secured 52GWh in planned capacity for the UK – over halfway to meeting 2030 demand.
1. In the forthcoming UK Battery Strategy, the Government should specify the extent to which future demand for batteries in the UK should be supplied by domestic sources in 2030 and 2040, along with a 10-year plan for scaling-up this capacity and an estimate of the public money required to do so.
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