Electric Car Economy Could Provide £24bn Boost

Mon 22nd Jun 2020

The transition to electric cars could provide a significant financial benefit to the UK economy over the next five years according to a new report.

The report, by the Advanced Propulsion Centre, focuses on the ‘strategic UK opportunities in passenger car electrification’ and has underlined a number of areas where the country can be at the forefront of the growing EV industry.

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.”

Data from the APC report suggests that the development of batteries could be worth £12 billion to the economy, while there are further opportunities in power electronics (£10bn) and electric machines (£2bn).

The UK is well placed to be at the heart of the EV revolution due to existing links with global producers, extensive chemical chain supply chain and the nation’s experience in research and development.

“The report reveals that opportunities for UK-based companies are available right across the spectrum,” Constance continued. “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."

Elon Musk’s Tesla is rumoured to be looking at the UK as a home for a ‘gigafactory’ to produce battery packs, while South Wales will see a huge factory built as part of a Swedish entrepreneur’s company, Britishvolt.