UK Battery Manufacturing and Gigafactory Growth

If the demand for batteries for private cars, commercial vehicles, HGVs, buses, micro-mobility, and grid storage is half of that in 2030, the demand in the UK will be around 100 GWh of supply, or the equivalent to five 20 GWh a year gigafactories. It could be even greater in 2040, when it could reach almost 200 GWh.

Thus far, plans have been submitted for just two gigafactories in the UK: Britishvolt's 30 GWh gigafactory in Blyth, Northumberland, which is already underway, and Envision AESC's 9 GWh plant at the International Advanced Manufacturing Park in Sunderland.

“The UK must act fast if it is to bring investment in new gigafactories to the UK,” said the institute, which added that although the government proposed “bold policy commitments” and had done much to boost investor confidence in the UK in which to do business, Faraday said that more was needed as the UK was falling behind competitors in Europe.

UK battery gigafactories could cumulatively have a capacity of 57 GWh by 2030, about 5% of total European GWh capacity, compared to 34% in Germany,” said Faraday.

The Shift to Electrified Transport

The shift to electrified transport is a key part of reaching net-zero targets, and the associated economic opportunities are enormous: the total value of the electric vehicle automotive and battery ecosystem could be GBP22 billion ($27 billion) by 2030 and GBP27 billion by 2040.

Battery Opportunities in the UK

The UK already had global experts in battery research and some big companies in place, which put the UK in a good position to produce next-generation batteries, including solid state, lithium-sulfur, and sodium-ion technologies, Faraday Institution CEO Pam Thomas said.

“We have a narrow window to capitalise on this competitive advantage by investing in domestic volume manufacturing in the UK, while also supporting continued funding for long-term battery research,” she added.

The institution urged the government to better promote the UK as an attractive location for battery manufacturing to investors while also helping to nurture new ones.

It added that the UK had also identified potential sites for gigafactories and the construction of related physical, transport, and energy infrastructure, plus developed a strategy to enable the conditions for a new lithium-ion battery recycling industry to thrive in the UK.

The government also needed to support the development of a resilient, sustainable, and efficient supply chain, develop skills and training, and commit to long-term funding for research into cheaper, lighter weight, longer-lasting, safer, manufacturable, and fully recyclable next-generation batteries, Faraday said.

Training for the New Electrified Economy

“The switch to electrification of transport and the move towards mass-market battery production is a huge change to the types of skills we need in our industries,” Matt Howard, chief strategy officer at the Faraday Institution, said.

“A national training curriculum, offering a quality, recognised and portable qualification, will give the UK’s engineering and manufacturing workforce a unique competitive advantage over other countries by ensuring that the right skills at the right time are delivered."

Government Ban on Gasoline and Diesel Vehicles

The government plans to prohibit the sale of new gasoline and diesel cars in 2030 and heavy goods vehicles in 2040, while by 2040, the UK automotive industry, according to the Faraday Institution, will produce over 1.8 million private cars and commercial vehicles.

According to Platts Analytics, UK sales of plug-in light-duty EVs could increase to 1.3 million units in 2030 and 1.6 million units in 2040.

Impact of Increased EV Demand on Battery Metals

Increased demand for EVs and subsequent growth in battery metals are supporting rising prices – with the Platts, part of S&P Global Commodity Insights, assessment of spot battery-grade nickel sulfate with minimum 22%-nickel content and maximum 100 ppb magnetic material climbing 23.3% since the beginning of the year to Yuan 41,800/mt ($6,230.25/mt) DDP China June 23.