Batteries: Manufacturing Industries

(asked on 21st July 2020) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment the Government has made of the extent of the need to support UK manufacturing capacity for batteries in the context of increasing usage of electric vehicles.


Answered by
Nadhim Zahawi Portrait
Nadhim Zahawi
This question was answered on 1st September 2020

In June 2020, the Advanced Propulsion Centre published a report showing there could be up to £12 billion of market opportunities for battery technology by 2025 for UK players:

https://www.apcuk.co.uk/app/uploads/2020/06/APC-Passenger-car-electrification-report-online-v1.pdf.

The Faraday Institution (FI) commissioned a study which showed that by 2040, demand for UK made batteries for the automotive sector will reach 140GWh, or seven 20GWh ‘Gigafactories’. The study can be found here at: https://faraday.ac.uk/wp-content/uploads/2020/03/2040_Gigafactory_Report_FINAL.pdf.

The Government has responded to the FI study by launching the Automotive Transformation Fund (ATF). The ATF will provide up to £1 billion to support innovative research and development projects to scale up manufacturing of the latest technology in batteries, motors, electronics and fuel cells. As part of the ATF, the Government is also calling upon industry to put forward investment proposals for the UK’s first Gigafactory. The programme will provide a focus for investment, promote the UK opportunity and support investors with site selection.

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