There is a positive outlook for battery manufacturing, with battery-electric vehicle (BEV) production set to double between 2027 and 2035, according to a new report.
The positive outlook comes from the Advanced Propulsion Centre UK’s (APC) latest Demand Report, which tracks demand for both battery and electrified components.
Despite continued adoption hurdles, global automotive battery demand is forecasted to pass the 4TWh mark by 2035, it said.
Last year was the first year that European automotive battery demand surpassed 1TWh, and while a positive trend is noted, figures reveal a slight dip when compared to those released in the prior report, the APC reported. The finding can be attributed to a shift in the types of vehicles being produced over the next decade.
The UK, while seeing a slower rate of growth, has significant opportunities to produce for export markets, with an expectation of 80% of production making its way overseas, the APC added.
In addition, the report details the importance of investment in the UK, the impact new OEMs and BEV models could have on the market, and the need to onshore and secure the battery chemistry supply chain if we are to achieve the 2035 predicted figures.
The impacts of the current industry situation at a global and European level will also have an effect, it said. Opportunities for the UK lie in being prepared to respond to Europe’s wider powertrain flexibility, with 40% of exports directed here. According to the APC, with innovation and R&D, the right combination of investment and partnerships driving the sector forward.
The APC’s quarterly demand reports are prepared by a team of expert analysts, and assess the current state-of-play of the UK automotive market, its supply chain and external influencing factors that impact production volumes and battery demand to 2035.
Julian Hetherington, Automotive Transformation Director at the APC, said:
“Transition is often accompanied by varying levels of uncertainty, and this is just what we currently see. We review the industry outlook for the automotive sector on a quarterly basis and there is substantial change in the global context from the last period to this. It is not unexpected at this stage in our transitional journey, but what remains consistent is the outlook to 2035, with BEV production figures expected to double.”
“It is exciting to see a strong focus on recycling and materials circularity. This will be a key part of the sustainability and full life cycle story for BEVs, and there is increasing momentum surrounding this and new opportunities for partnerships at both supply chain level and Tier 1 original equipment manufacturers (OEMs).”
Dr Hadi Moztarzadeh, Head of Technology Trends at the APC, added:
“Across Europe we are seeing a continued deficit of anode and cathode active material, and this looks set to be the case right up until 2035, with localising production the key challenge. The UK will have to localise the battery value chain to comply with regulatory frameworks, like ‘Rules of Origin,’ by 2027.
“There is huge opportunity to build on materials refining and processing capabilities in the UK to make that happen.”
Image of report courtesy of the APC
