Britain has quietly built one of Europe's most diverse and innovative electric vehicle battery supply chains, drawing more than £7 billion in investment, according to a new industry report.

The study, titled The UK's EV Battery Economy: A strategic review of the UK's battery manufacturing sector, was compiled by transport research group New AutoMotive and is described as the most thorough audit of the industry produced so far. It identifies more than 14 major projects across the sector, covering everything from lithium extraction and chemical refining to gigafactory construction and battery recycling.

Industry warns against policy delays

Ben Nelmes, chief executive of New AutoMotive, said the UK had built genuine momentum in its battery supply chain, securing billions in investment for projects that would shape the country's industrial future. He cautioned that slowing down or watering down the shift to electric vehicles now would damage investor confidence, threatening the funding already committed, thousands of skilled jobs, and Britain's competitive standing. He called on the government to provide a stable, long-term policy framework so businesses could confidently build factories and cement the UK's position as a leader in clean energy.

A growing domestic supply chain

The report notes the sector already generates £4.2 billion annually and supports over 10,000 high-value jobs. It singles out Envision AESC's 15.8 GWh gigafactory in Sunderland and Agratas's £4 billion, 40 GWh facility in Somerset as key projects helping to regenerate industrial regions. Elsewhere, Cornish Lithium's operations in the South West and geothermal brine projects in County Durham are helping establish a domestic source of critical minerals, while Tees Valley Lithium and Green Lithium are developing UK facilities to refine battery-grade materials.

Recycling seen as a competitive advantage

With more than two million electric vehicles now on UK roads and EVs accounting for roughly 30% of monthly car sales, the report highlights recycling as a major opportunity. Because Britain is an island using right-hand-drive vehicles, used EVs are rarely exported, meaning most retired batteries remain in the country. Firms such as Altilium and Recyclus Group can recover over 95% of valuable minerals like lithium, nickel and cobalt using hydrometallurgical methods that produce half the emissions of traditional mining.

Future demand could outstrip supply

The report projects the UK will need around 115 GWh of battery cells annually by 2035, yet confirmed capacity covers just over half of that, meaning two or three more gigafactories are required. It warns that weakening the Zero Emission Vehicle Mandate could undermine investment, and stresses that guaranteeing stable domestic demand is essential to keeping Britain competitive in the global battery race.

Source: Yahoo News UK

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