Connecting the dots

In 2010, a Houses of Parliament POSTnote published by the Parliamentary Office of Science and Technology noted that the British public’s increasing interest in electric vehicles (EVs) warranted further exploration. Reducing greenhouse gas emissions, dependency on oil and delivering customer savings through fuel efficiency were all cited as reasons to switch, but it was a line taken from another report that provided the answer to the government’s interest.

Referring to an earlier industry review conducted by the New Automotive Innovation and Growth Team, the note identified “early development of low-carbon vehicles as a major opportunity for the UK”. Specifically, the integration of domestically manufactured components could stimulate the economy as “engines and several prototype electric vehicles for major manufacturers [were] produced by British design engineering companies”.

Ever since, successive UK governments have made it a matter of policy to foster a green revolution. But turning off the lights was easy; what lies ahead in the dark is unfamiliar. So, here too, the UK government sought to light the way. In 2024, the Zero Emission Vehicle (ZEV) Mandate became law, marking the first substantive legislation passed that directly affected drivers’ fuel decisions. Simply put, by 2035, all new cars and vans sold must be zero emission. The logistics industry, in consideration of fleet transition costs, has been afforded more time for heavy goods vehicles (HGVs), until 2040.

With so many forces trending towards electric, the new Electric Vehicle Excise Duty (eVED) adds further momentum to the ZEV push, implementing a pence-per-mile tax on all electric cars from April 2028. Mass adoption is now a matter of when, not if and so consideration must be paid to the requirements of this shifting world – notably those of batteries.

Capacity and capability

From the first cars of the 1890s, it wouldn’t be until 1971 that over half (52%) of households would have access to a car. By 2024, around 83% of households reported using a car once a week. For 140 years, infrastructure outpaced ownership, ensuring that no vehicle would be left behind. With Zapmap putting the UK market share of EVs at 6.2%, as of July 2026, mass adoption asks an automotive industry engineered to cater for internal combustion engines (ICE) to retrofit for a green future.

“Electrification moves the hard part of the automotive supply chain upstream,” says LightSource CEO Spencer Penn. “A combustion vehicle’s supply base is thousands of suppliers making mature mechanical parts.”

Expanding advanced manufacturing capabilities, thus moving one step closer to domestic battery production, is a primary aim of the current UK government strategy – as outlined in the UK Modern Industrial Strategy 2025 (MIS). Aside from financially supporting domestic battery manufacturing to facilitate supply chains and “rolling out hundreds of battery electric and hydrogen fuel cell HGVs, and new charging and fuelling infrastructure”, the MIS makes clear that expertise will be required. Set up in 2023, the UK Battery Strategy Taskforce combines industry know-how with battery and supply chain academics. However, even with this meeting of machine and mind, the taskforce is aware of the hurdles ahead, with its inaugural announcement aiming to design and develop the batteries of the future, rather than the present.

Simply put, EV batteries demand resources and parts that are not currently available within British borders.

“An electric vehicle concentrates roughly 40% of its value in one component, and that component is process chemistry – refined lithium, cathode and anode materials, cells – made by a handful of companies, mostly in China,” Penn adds.

At the cutting edge of intelligence-led procurement, LightSource facilitates the UK automotive EV supply chain by providing AI-driven tools designed for complex vehicle manufacturing. However, the gaps in the supply chain remain in the physical rather than digital realm, with power and battery capacity at the crux of the mass-transition issue.

“The UK’s biggest gap sits underneath cell assembly,” Penn explains. “Sunderland is producing and Somerset is building. But there is still no commercial-scale cathode or anode material production in the country, limited refining – and most battery scrap leaves the UK as black mass and comes back as someone else’s product.”

Located in Sunderland, the AESC UK electric vehicle battery gigafactory is one of a kind, with a second under construction in Somerset and a third touted for Coventry. When the £1bn Sunderland site is fully operational, it is expected to make enough batteries for 100,000 electric vehicles annually. Sounds great, but it is but a drop in the ocean compared with the 598,000 new fully electric cars expected to be registered in 2026, according to Society of Motor Manufacturers and Traders (SMMT) data.

Technology company ABB Group’s ABB Automotive Manufacturing Outlook Survey 2025 illustrates the worries of manufacturers racing towards the UK’s 2040 (and European Union’s 2050) deadline. ABB’s report states that 26% think that full transition is impossible within the current timelines, while 18% think that they may manage to meet targets, but only after accounting for some challenges.

While power requirements could put massive strain on a National Grid already experiencing climate-related and antiquated infrastructure related issues, for the automotive industry, there is also the issue pertaining to availability of skilled workers.

“The skills challenge extends well beyond high-voltage powertrains,” says Nick Connor, CEO of the Institute of the Motor Industry (IMI).

“Electric vehicles are increasingly equipped with sophisticated connected and automated systems, adding further layers of complexity for the technicians responsible for maintaining and repairing them. This makes continuous professional development more important than ever.”

Operating as a professional body for automotive professionals, the IMI has its finger on the battery pulse. The IMI has already identified the coming demand for upskilling, but will it be enough to keep up with current vacancies?

“The IMI forecasts continued growth in EV certification over the next decade, with the number of EV-qualified technicians projected to reach around 137,000 by 2032 and 193,000 by 2035,” Connor explains. “However, projected demand continues to rise at a faster rate. The gap between technician supply and demand increases sharply from the early 2030s, with shortages beginning in 2033 and growing year by year. By 2035, the shortfall rises to more than 43,000 technicians.”

“What the UK and Europe lack is qualified capacity: the right chemistry and format, at competitive yield, with the materials layer underneath it,” Penn concurs.

“Add the January 2027 UK-EU rules of origin and China’s export-licence regime on battery materials and equipment, suspended only until November, the factory itself starts to look like the most manageable part of the problem,” he adds.

Battery Britain

UK industry once powered the world, but decades of deindustrialisation have gutted many a manufacturing stronghold. Automotive manufacturers are one of the last stalwarts of British industry with a global presence. The loss of capacity through intentional shrinkage means that a domestic supply chain capable of supporting mass EV adoption – let alone an advanced battery manufacturing sector – must be fostered if it is to meaningfully support the government’s vision of the future.

“Over the next five years I expect assembly to regionalise while the upstream stays global. Cells will increasingly be made in-market – in the UK, Europe, and the USA – but often [based] on Asian technology, equipment, and licences, so local will describe geography more than control,” says Penn.

The incumbent UK prime minister, Andy Burnham, has staked his premiership on tackling regional inequality, devolving government powers and reindustrialising the UK.

“The logistics sector is at the centre of the EV transition,” Connor concludes. “There is no question that the electric battery supply chain needs to evolve to meet demand.”