Britain’s electric vehicle battery industry has secured more than £7 billion in investment, with the UK quietly building one of Europe’s most diverse and innovative supply chains, according to a report.
The UK’s EV Battery Economy: A strategic review of the UK’s battery manufacturing sector, was produced by transport research group New AutoMotive and is billed as the most comprehensive audit of the sector to date.
It lists more than 14 major projects, spanning lithium extraction, chemical refining, gigafactories and recycling.
Ben Nelmes, chief executive of New AutoMotive, said: “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.
“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.
“Businesses need a stable, long-term policy framework to build these factories and secure Britain’s role as a leader in the global clean energy transition.”
The UK’s battery sector already generates £4.2 billion a year and supports more than 10,000 high-value jobs, the report says.
It highlights Envision AESC’s 15.8 GWh gigafactory in Sunderland and Agratas’s £4 billion, 40 GWh site in Somerset, saying both are helping revive industrial regions.
The report also points to progress in domestic mineral extraction, including Cornish Lithium projects in the South West and geothermal brine operations in County Durham, which could help build a UK supply of critical minerals.
Chemical refining is also growing, with Tees Valley Lithium and Green Lithium planning UK facilities to process battery-grade materials.
The report says recycling could give the UK a competitive edge.
More than two million electric vehicles are now on UK roads, while EVs make up around 30 per cent of monthly car sales. That means a growing stock of old batteries contains valuable minerals.
The report says the UK has an advantage over mainland Europe because it is an island and uses right-hand-drive vehicles.
The report says these vehicles are rarely exported second-hand, so most retired EV batteries stay in the UK, providing a domestic supply of lithium, nickel and cobalt.
Recycling firms including Altilium, which operates in Plymouth and is expanding to Teesside, and Wolverhampton-based Recyclus Group can recover more than 95 per cent of these minerals using hydrometallurgical processes.
The method produces 50 per cent fewer emissions than traditional mining and could support a circular, low-carbon supply chain for UK gigafactories.
Despite the progress, the report warns that the industry’s future depends on continued political support and policy certainty.
The report warns that weakening the Zero Emission Vehicle (ZEV) Mandate could deter investment and slow growth.
By 2035, the UK is expected to need around 115 GWh of battery cells a year for vehicles and energy storage.
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Confirmed capacity covers just over half that demand, leaving the UK needing two or three more gigafactories.
The report says the best way to attract investment is to guarantee strong, stable demand at home.
Without clear, long-term policy, the report warns, the UK risks falling behind in a sector that could shape its industrial future.