The rapid electrification of the UK’s transport and energy sectors is expected to significantly increase domestic battery demand, surpassing 100GWh annually by 2035.
A new report from UKRI’s Faraday Battery Challenge, delivered by Innovate UK, forecasts major economic opportunities if this battery demand is harnessed by boosting domestic manufacturing.
The automotive sector will dominate the battery market, accounting for around 90% of the projected demand.
Aerospace follows, requiring an estimated 2.2GWh annually, potentially adding £8 billion to the UK economy and supporting 111,000 new jobs.
Compiled with insights from the High Value Manufacturing Catapult and WMG, Warwick University, the report emphasises a cross-sector collaborative approach to scaling battery manufacturing and ensuring supply chain resilience.
Ben Walsh, Faraday Battery Challenge, said: “The UK aims to electrify industry and become a green energy superpower by 2030. This report underscores the significant opportunity—but meeting battery demand requires coordinated strategies across sectors, innovative battery technology, and addressing supply chain gaps.”
Martin Dowson from WMG, Warwick University, noted, “Each sector faces unique challenges—rail, automotive, marine, aerospace—none of which currently have adequate plans to manage growing battery demand. Innovation and cross-sector collaboration will be crucial.”
Key findings reveal distinct sector needs. Aerospace battery demand hinges on electric vertical take-off and landing (eVTOL) viability.
Rail demand will require faster-charging, longer-lasting batteries. Marine demand is limited to short-range port-based vessels.
Research must address cost reduction, charging improvements, and safety enhancements, including mitigating thermal runaway risks.
Affordable, robust batteries with reliable performance could significantly stimulate market growth.
The report calls for joint policy and industry action to resolve shared challenges, accelerating the transition to electrification and positioning the nation as a global leader in battery innovation and manufacturing.
Copyright © 2025 Energy Live News LtdELN