The strategy outlines the Government’s commitment to over £2 billion in new capital and R&D funding for the automotive sector until 2030. This investment will support the manufacturing and development of zero-emission vehicles, their batteries, and supply chains.
Highlighting the UK’s legacy in battery technology, which dates back to research in the 1970s at the University of Oxford leading to the lithium-ion battery, the strategy is a government-wide effort developed in collaboration with businesses. It addresses the substantial economic opportunities in the battery sector, especially with the expected rise in global demand for lithium-ion batteries, driven by an increased need for energy-efficient products like electric vehicles (EVs).
The strategy also emphasises the importance of critical minerals like lithium, cobalt, nickel, and graphite, crucial for battery production. The UK government has actively worked to strengthen domestic capabilities and international partnerships in securing these minerals.
One of the highlights of the strategy is the substantial investment in the automotive sector, including significant projects like the AESC Group gigafactory in Sunderland and Tata’s new gigafactory, creating thousands of jobs and boosting the UK’s annual battery production capacity to 52GWh.
The Government’s vision for 2030 focuses on establishing a globally competitive UK battery supply chain that contributes to economic prosperity and supports the net zero transition. The strategy details the government’s approach across three pillars: DESIGN, BUILD, and SUSTAIN. This includes supporting innovation, securing a resilient manufacturing supply chain, and enabling sustainable industry development.
Furthermore, the strategy acknowledges the role of batteries in national security and the development of innovative defence capabilities. It envisions the UK’s automotive sector adapting to the growing demand for EVs, with an estimated production capacity of 1.4 million EVs by 2030.
The strategy concludes with a commitment to targeted government support in various facets of the battery ecosystem, from research and innovation to international collaboration and investment in skills and recycling technologies.
With this comprehensive strategy, the UK government sets a clear path toward becoming a world leader in battery technology, reinforcing its commitment to a sustainable future and economic growth.
Source: UK battery strategy | Department for Business and Trade
