UK emerging as EV battery 'powerhouse' already supporting 10,000+ jobs
Fri 18 September 2026
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A report from consultants New Automotive says that the UK is "quietly building one of Europe’s most dynamic battery ecosystems". It says that over $7bn has been committed across 14 major commercial projects, generating £4.2 billion in turnover and supporting more than 10,000 high-value industrial jobs nationwide. The report warns, however, that weakening the ZEV mandate could threaten UK progress in the sector.
The UK’s EV Battery Economy is the most comprehensive study of Britain’s emerging EV battery supply chain so far published. It looks at the whole process -from lithium extraction in Cornwall to flagship gigafactories in Sunderland and Somerset.
The report says that Britain's EV battery industry strengths are distinctive: world-class research, deep chemical process expertise, and a recycling opportunity, built on a captive, right-hand-drive island market that few countries can match. It says that "Britain’s right-hand drive island geography creates a unique circular economy advantage: a 'captive domestic mine' supplying recyclers with high-grade critical minerals at half the carbon footprint of virgin mining.
The report warns, however, that turning billions of investment into effective operations relies on policy certainty. It says that "Protecting the Zero Emission Vehicle (ZEV) Mandate is essential to secure investment and anchor Britain’s clean industrial leadership".
New Automotive makes five recommendations for Government:
Hold firm on the ZEV mandate: Provide unwavering domestic market certainty to give debt and equity investors the confidence needed to finance long-term investments in battery manufacturing plants.
Deliver competitive industrial electricity prices: Implement the British Industrial Competitiveness Scheme (BICS) on schedule by April 2027 to lower power costs by £35 to £40 per MWh for energy-intensive battery chemical refiners.
Deploy Minister-led deal-making for Coventry: Appoint a dedicated minister and negotiating taskforce to actively engage global cell manufacturers and secure an anchor tenant for Coventry’s 60GWh GreenPower Park.
Retain strategic feedstock in the UK: Restrict exports of unprocessed black mass to feed domestic hydrometallurgical recycling refineries, keeping critical raw materials within the British industrial economy.
Modernise Waste Laws & Introduce Battery Passports: Conclude Defra’s consultation on updated battery regulations and mandate Digital Battery Passports by 2027 to facilitate second-life storage and closed-loop domestic recycling.
In conclusion, the report says that the UK has assembled the foundations of a domestic battery supply chain spanning lithium extraction, refining, battery manufacturing and recycling. "With £7 billion invested or committed, and multiple gigafactories under development, the sector has the potential to secure the future of British automotive manufacturing in the electric era".
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