The majority of projected battery demand is made up by EV batteries. The Faraday Institution [footnote 247] and BloombergNEF [footnote 248] estimate that the demand for UK EV battery manufacturing capacity will reach around 100GWh per annum in 2030, predominately for private cars and light commercial vehicles (LCVs).
The Faraday Institution estimate that the demand for UK battery manufacturing capacity will reach around 100GWh per annum in 2030, predominately for private cars and light commercial vehicles.
Battery demand in the UK is expected to increase significantly. There is an opportunity to meet this demand by scaling domestic manufacturing, along with supply and processing of key materials such as lithium. Some emerging battery technologies could be well suited to application in a decarbonised grid.
‘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. ↩
Stationary storage will also increase battery demand, accounting for about 400 GWh in STEPS and 500 GWh in APS in 2030, which is about 12% of EV battery demand in the same year in both the STEPS and the APS. IEA. Licence: CC BY 4.0 Battery production has been ramping up quickly in the past few years to keep pace with increasing demand.
At present, 47% of the projected demand for UK batteries to 2030 remains unaddressed by existing gigafactory development plans. Furthermore, 71% of the demand projected to 2040 has yet to be met.
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