£7B Dedicated to UK’s Battery Revolution, but New AutoMotive Stresses Need for Strong ZEV Mandate

Summary of the UK’s EV Battery Supply Chain Developments

A new report by New AutoMotive reveals that over £7 billion has been invested in Britain’s developing electric vehicle (EV) battery supply chain. The report, titled The UK’s EV battery economy: A strategic review of the UK’s manufacturing sector, tracks over 14 major commercial projects including lithium extraction, cell gigafactories, and battery recycling.

Key Findings:

• The UK’s battery supply chain currently generates £4.2 billion annually and supports 10,000+ high-value jobs.
• Envision AESC is expanding its 15.8GWh facility in Sunderland, while Agratas is constructing a £4 billion 40GWh facility in Somerset.
• Cornish Lithium is leading projects for domestic lithium extraction, with chemical refining facilities planned by Tees Valley Lithium and Green Lithium.
• A new 60GWh GreenPower Park is planned for Coventry Airport, aiming to boost cell manufacturing partnerships.

Competitive Advantages:

• The UK EV fleet surpassed two million vehicles in August 2026, with electric cars achieving a 30% monthly market share.
• The UK benefits from a “captive domestic feedstock” for battery materials due to predominately right-hand-drive vehicles, which are rarely exported second-hand. This allows domestic recyclers like Altilium and Recyclus Group to recover critical minerals efficiently.

Recommendations:

New AutoMotive outlines five policy recommendations to maintain momentum in battery manufacturing:

1. Maintain the ZEV mandate to bolster investor confidence.
2. Competitive industrial electricity prices through the British Industrial Competitiveness Scheme (BICS).
3. Minister-led initiatives to secure global cell manufacturers for key sites like Coventry.
4. Restrict export of unprocessed materials to enhance domestic recycling.
5. Modernize waste laws and implement Digital Battery Passports for improved recycling processes.

Ben Nelmes, CEO of New AutoMotive, emphasizes the need for stable, long-term policies to secure investments and ensure Britain leads in the global clean energy transition.