As we have discussed in previous blogs, there are several reasons for the increase in demand for EVs, including the petrol crisis and the drive for low emission solutions to help achieve the UK’s net zero emissions target. But to meet this demand, increased production of batteries for electric cars needs to keep pace.
The UK’s independence in car manufacturing
Brexit has had a huge effect on many industries, but as predicted before the UK left the EU, the car manufacturing market is one of the most significantly affected. Import taxes have forced manufacturers to consider making more car components here in the UK. The market for electric vehicle batteries is currently dominated by China, Korea and Japan. Whilst it is unrealistic to think the UK can come close to matching the vast output of South East Asia, there is now a clear need to avoid relying on these imports so heavily.
Nissan’s gigafactory
Battery companies around the world are investing billions into capturing the market for the global increase in demand for EVs. In partnership with Envision, Nissan have created one of the only large-scale battery production plants in the UK. Originally, Nissan planned to build a £1bn plant which would produce 11GWh, but they have now released their plans for a much larger expansion which is expected to reach 38GWh.
The UK government has estimated that battery output per year will need to be 140GWh by 2040 if it hopes to keep up with the car market and the reduction of non-electric vehicles. so, while there is still a long way to go, Nissan’s plans are a big step in the right direction.
Plans for other UK gigafactories
Nissan is not the only business with big plans for investment in a greener future. Here in the Midlands, Coventry Council and Coventry Airport Ltd have partnered to create a plan for the UK’s largest gigafactory. They aim to be supplying batteries by 2025 following a £2.5bn investment, which is hoped will create 6,000 skilled jobs.
Britishvolt, along with investment from Glencore, plan to invest £4bn into a gigafactory in Northumberland with the aim of producing 30GWh by 2027. However, this is still in the planning stages as the project has not yet received full funding.
Whilst the UK and the US are further behind than other countries in producing car batteries, the recent surge in investments in Europe should lead to significant improvements.
Innovative solutions for the vehicles of the future
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