HomeDealsAskCheckupSearch

Gas & electricity news

UK EV Battery Supply Chain Pulls in Over £7 Billion

Fourteen projects are building a domestic supply chain from lithium extraction to recycling, backed by the ZEV Mandate.

19 September 2026 · Oliver Hartnell · Fuse Energy

Investment Scale and Jobs

More than £7 billion has now been committed across 14 projects that cover the full battery lifecycle. The sector already turns over £4.2 billion a year and supports over 10,000 direct jobs. Two gigafactories stand out: Envision AESC’s Sunderland plant is scaling to 15.8 GWh, while Agratas is building a £4 billion, 40 GWh facility in Somerset expected to create around 4,000 roles.

Supply-Chain Projects

Lithium extraction is advancing in Cornwall, with chemical refining plants planned for Teesside by Tees Valley Lithium and Green Lithium. On the recycling side, Altilium and Recyclus Group are recovering over 95 % of key minerals using hydrometallurgical processes, helped by the UK’s captive stock of right-hand-drive batteries.

Policy Backing and Consumer Impact

The Zero Emission Vehicle Mandate, in force since January 2024, gives manufacturers clear sales targets that underpin these long-term bets. A stable framework is essential; any dilution risks the billions already pledged. Recent Dutch research showed that pairing heat pumps with EVs can cut household costs sharply once domestic battery production lowers vehicle prices.

Quote and Outlook

"The UK has built real momentum in the battery supply chain, securing over £7 billion in investment for projects that will drive our industrial future."
— Ben Nelmes, CEO, New AutoMotive

We’re watching how this domestic capacity feeds into grid storage and smart-charging offers. Check current tariffs and EV tariffs on our energy comparison pages to see what the shift could mean for your bills.

Latest Fuse Energy news

Latest Gas & electricity news