UK battery production needs to 40 times over

A report, Powering the Drive to Net Zero, concludes that only the private sector can provide finance at the pace and scale needed to enable the transition to cleaner road transport.

The UK can become a global player in electric vehicle (EV) batteries if billions of pounds are invested now to build a battery supply chain, yet, at present, organisations across the battery supply chain find it hard to secure the high levels of funding needed to scale up because battery developments are often considered high risk. Banks and institutional investors are cautious about investing in an emerging sector, particularly when future revenues are not certain and offtake agreements to buy batteries have yet to be signed. This means developers have to bridge a funding “valley of death” as they seek to scale up, with challenges around securing investment which matches the risk profile.

The report, by the Coalition for the Decarbonisation of Road Transport (CDRT), established by the Green Finance Institute in January 2021, brings together an expert multi-stakeholder group focused on identifying the most promising market solutions to scale up the investment in zero-emission road transport and supporting infrastructure.

It highlights the opportunity to invest in the burgeoning global demand for EV batteries, which will underpin the future of road transport. But warns that there is a narrow window to seize this opportunity and significant barriers to investment must be overcome.

The UK currently produces around 2GWh of battery capacity a year but will need to ramp up to over 90GWh a year by 2030 to maintain a car industry at its current size. Investment is urgently needed to increase battery production and secure for the UK a major share of the rapidly growing global battery supply chain market.

    Share Story:

Recent Stories