Electric vehicles could benefit UK economy by £24bn by 2025

In the next five years, the move to electric cars could benefit the UK economy by £24 billion, a new report by the Advanced Propulsion Centre has said.

The ‘Strategic UK opportunities in passenger car electrification’ report coincides with government pledges around a ‘green recovery’.

It identifies 12 key opportunities for UK industry in the future manufacture and supply chain for electric vehicles.

The report breaks down the market growth opportunities in batteries (£12bn), power electronics (£10bn) and electric machines (£2bn). It indicates that given forecast global demand for electrified propulsion technologies, suppliers will need to ramp up their capacity to 10 times current levels.

Ian Constance, CEO at the Advanced Propulsion Centre says: “The electrification of vehicles is happening at pace, but if we are to deliver on our 2035 goals, and take our place as world-leaders, the supply chain will need to expand more rapidly – our research predicts up to ten-fold in the next five years.”

With a global potential of over £97 billion, the UK is already well placed and capable of delivering this growth with established global producers, an extensive chemical supply chain and leading research and development expertise.

Constance continues: “The report reveals that opportunities for UK-based companies are available right across the spectrum. In the next few years the APC expects to be funding projects developing technologies in everything from magnet manufacturing to semiconductors and electric steel to battery components."

By building an ecosystem of collaboration between academics, industry and government funding, the APC hopes to create an environment that can build complementary skills and develop high-impact technology and manufacturing processes and is primed to support those businesses with the most potential for growth.