Move to electric cars could deliver £24bn boost to UK economy by 2025

Posted on 22 Jun 2020 by Jonny Williamson

The move to electric vehicles offers a potential £24bn growth opportunity to the UK economy over the next five years, according to new research by the Advanced Propulsion Centre, released to coincide with government pledges around a ‘green recovery’.

With 100% of passenger cars requiring some form of electrification by 2030, the forecast industrial revolution in the automotive industry is crucial to the UK economy.

The Advanced Propulsion Centre (APC) report identifies 12 key opportunities for UK industry in the future manufacture and supply chain for electric vehicles.

While the research found that the building blocks for electrification are already in place, it 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 within the next five years.

APC CEO, Ian Constance commented: “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.”

With a global potential of more than £97bn, the UK is already well placed and capable of delivering this growth with established global producers, an extensive chemical supply chain and leading R&D expertise.

Constance continued: “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.

The Advanced Propulsion Centre (APC) accelerates the industrialisation of technologies which will help to realise net-zero emission vehicles. It is at the heart of the UK government’s commitment to end the country’s contribution to global warming by 2050.

Over an initial 10-year lifespan, the APC has a goal to save 50 million tonnes of CO2 emissions from the automotive industry, supporting the UK government’s net-zero plans. It is therefore investing in technologies that help lower emissions and protect the environment.

Since its foundation in 2013, APC has funded over 110 low-carbon projects involving more than 290 partners. The technologies developed in these projects are projected to save over 179 million tonnes of CO2, the equivalent of removing the lifetime emissions from 6.5 million cars.

APC projects have helped generate economic benefits too. Companies involved have seen turnover increases of 14–17%, with new jobs increasing by 8–10%. Together these have generated a 17% uplift to GVA.

*Image courtesy of Depositphotos