UK creates a £7bn battery pipeline

The UK automotive sector is far from dead, in fact whilst it is off its global peak in the 1950s when it was the second largest producer of vehicles in the world after the us, the sector accounts for 11 per cent of all manufactured goods.

Around three quarters of the vehicles produced in the country are made for export and that contributes around £47bn a year to the economy.

As EVs gain ground, battery manufacturing has gained importance, and being co-located with vehicle manufacturing plants has increasingly become the norm.

It is not surprising then, but rather overlooked, that a new wave of investment across the battery supply chain in the UK now stands at £7bn on disclosed projects spanning lithium extraction, refining, battery manufacturing and recycling, with several further projects yet to disclose investment figures, research by New AutoMotive has disclosed.

Together, these projects have the potential to establish one of Europe's most complete battery ecosystems.

The UK’s EV Battery Economy: A Strategic Review of the UK’s Battery Manufacturing Sector points to the diversity and strength of the UK’s position, but notes that there are some ‘mixed signals’, with EV registrations are up, yet the Government is considering weakening supply-side policy. Arguing against any weakening, the report notes that The UK ZEV Mandate governs domestic sales, but the UK is fundamentally an export-led vehicle producer, with the majority of cars destined for European markets.



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