Batteries

As the world shifts decisively towards sustainability, battery demand is set to surge significantly. The UK stands at the heart of this transformation, driving major market opportunities.

UK government’s commitment to strengthening the domestic battery industry and the insulation and expansion of its supply chains will deliver increased international competitiveness and economic security for businesses.

Opportunity highlights

The UK’s advanced battery sector offers major growth opportunities across innovation, manufacturing, and next-generation applications. Supported by leading research, skilled talent, and rising demand across multiple industries, it stands at the forefront of global electrification and the clean energy transition.

Innovation and R&D

Develop novel battery cell formats, chemistries and applications, enabled by an exceptional batteries ecosystem, highly skilled workforce, and globally-renowned institutions.

Battery manufacturing

Establish and scale-up manufacturing operations, join expanding gigafactory supply chains and fulfil growing domestic and international battery supply demands.

Recycling, reuse and end-of-life

Recycle critical battery materials commercially, enable second life applications and manage safe disposal of retired hardware and chemicals, reducing reliance on virgin inputs in battery manufacturing.

Automotive

Supply electric vehicle batteries, set to be in significant demand to support the UK’s transition to 100% zero emission new vehicles by 2035.

Aerospace

Develop novel and lightweight technologies, fuelling total UK domestic flight decarbonisation by 2040 and a fully net zero UK aviation sector by 2050.

Rail

Develop and deploy battery-powered locomotive technologies, satisfying the need to decarbonise an expansive passenger and freight network. Diesel-only trains are due to be phased out by 2040 in the UK, with a complete transition to net zero by 2050.

Maritime 

Create more efficient and energy-dense battery technologies as exclusive power sources for lower tonnage and short-haul vessels, and batteries for hybrid systems of larger vessels, enabling a more sustainable maritime industry.

Defence

Deploy dual-use battery technologies for the UK Armed Forces’ ongoing electrification, supporting electric-powered military vehicles, aircraft, vessels, autonomous systems, logistics and always-on systems critical to national defence

Battery energy storage systems (BESS)

Supply technologies critical to grid-scale stationary energy storage. With up to 27 GW (gigawatts) capacity required by 2030 and only 4.5 GW currently deployed, empower the shift to a sustainable economy by enabling the UK to meet capacity requirements.

Commercial maturity

With the UK battery industry set to reach £10.8 billion by 2030. With manufacturing demand projected to grow from 110 GWh (gigawatt hours) in 2030 to 200 GWh by 2040, companies can tap into an expanding market supported by a highly trained workforce of over 10,000. Additionally, it is predicted that 82% of total UK battery demand until 2040 will come from EVs (electric vehicles) and LCVs (light commercial vehicles), with significant, growing opportunities in other applications.

Key UK assets

The UK has several key clusters supporting across battery industries.

West Midlands

The region has a mature automotive sector linked to a national and international supply chain, with an economic value of £3.2 billion GVA, employing around 46,500 people. The West Midlands Gigafactory will become one of the UK’s largest single industrial buildings, covering the same area as 74 football pitches. Powered by 100% sustainable energy, at full capacity it will produce up to 60GWh – enough to power 600,000 electric vehicles per year. It’s expected to attract £2.5 billion of investment, creating up to 6,000 direct jobs and tens of thousands more throughout the supply chain.

North East of England

A trailblazer of the first industrial revolution that has now positioned itself as an important hub for the UK’s green industrial revolution. The region hosts Europe’s first battery manufacturing facility, along with diverse battery component manufacturers and several leading universities – Newcastle, Durham, and Northumbria – engaged in cutting-edge battery R&D and skills development.

R&D capability

The UK Battery Industrialisation Centre (UKBIC) is part of the UK government-funded Battery Innovation Programme. The £130 million UKBIC is a pioneering concept in the race to develop battery technology for the transition to a greener future.  The unique facility is the only open access facility in Europe and provides the missing link between battery technology, which has proved promising at laboratory or prototype scale, and successful mass production. Based in Coventry, the publicly-funded battery product development facility welcomes manufacturers, entrepreneurs, researchers and educators. It can be accessed by any organisation with existing or new battery technology that will bring green jobs and prosperity to the UK.

The Advanced Materials Battery Industrialisation Centre (AMBIC), funded by UK Research and Innovation’s Battery Innovation Programme and delivered by Innovate UK, is a dedicated environment to design, develop, test and commercialise new battery materials and technologies. Its unique setup provides critical capabilities to bridge the gap between battery materials research and cell prototyping and includes lithium-ion, solid-state batteries and other alternative battery technologies.

The Advanced Propulsion Centre (APC) is a joint venture between the UK government and the automotive industry to position the UK as a global centre of excellence for low carbon powertrain development and production. The APC helps numerous automotive companies, ranging from SMEs to global OEMs, to develop world leading technology. This ranges from incremental improvements, such as the first automatic stop-start system for buses, to radical new solutions such as a gas-turbine generator for extending the range of electric vehicles.

Business and government support

The Battery Innovation Programme (BIP), formerly the Faraday Battery Challenge, positions the UK as a global leader in next-generation battery technologies. Backed by £452 million of government investment, BIP supports innovation from lab to factory, backing start-ups and SMEs to scale, commercialise, and anchor in the UK. With new funding secured for 2026–27, the programme is a key pillar of the UK’s industrial strategy, offering international investors a gateway into a growing, strategically supported battery ecosystem that spans R&D, manufacturing, and recycling.

Talent

The UK government’s battery strategy outlines a comprehensive plan to develop its talent pipeline in battery production. The National Battery Training and Skills Academy (NBTSA) is designed to support the UK’s growing battery industries and eventually the whole ecosystem, delivering classroom and hands on training to existing and new staff as the industry undergoes a major expansion. A collaboration between Newcastle University and New College Durham, the academy focuses on level 2 and 3 training and skills. Students are encouraged to continue their learning beyond the academy, and battery-related continuing professional development courses and degree apprenticeships create a continuum of skills development.

The Battery Manufacturing Skills Pathway (B-MSP), launched by University College Birmingham in partnership with City & Guilds and Innovate UK, is the UK’s first fully accredited, industry-backed training programme for battery manufacturing. The pathway integrates augmented- and virtual- reality simulations, real-world production equipment, and immersive learning to prepare students for roles in gigafactories and SMEs.

Case studies

AESC £1 billion EV manufacturing hub

Japan-headquartered AESC secured £1 billion in funding in 2025 for a new EV battery plant in Sunderland – £680 million from the UK Government and £320 million of private funding. The gigafactory will support the nearby Nissan factory, employ more than 1,000 people and supply 100,000 EV batteries each year, a potential six-fold increase on the UK’s current capacity.

Tata – Agratas

Somerset is the future home of Agratas’ cutting-edge electric vehicle battery manufacturing facility in the UK. Situated on the Gravity Smart Campus near Bridgwater, this multi-billion-pound project will play a pivotal role in advancing green technology and sustainable energy.

Set to become one of the largest battery manufacturing facilities in the UK, the site is expected to supply nearly half of the nation’s projected battery capacity for the automotive sector by the early 2030s. The facility will contribute significantly to the growth of the UK’s electric vehicle industry and support the shift toward a more sustainable future.

Industrialisation at the Somerset site is already underway, with construction progressing in phases. Battery production is scheduled to commence in 2027, marking a major milestone in the journey to clean energy solutions.