Low carbon innovation paving the way for electric vehicles
In June 2019, the UK government amended the Climate Change Act (2008) and set a new target of achieving net zero greenhouse gas emissions by 2050. This made the UK the first major economy in the world to legislate for Net Zero. An important aspect to achieve this target is the creation of ambitious actions, as well as innovative technologies within relevant industries. The automotive industry is of particular importance in reaching this target and the UK government’s commitment to support low carbon innovation within this industry provides opportunities for Swedish companies offering solutions for the Electric Vehicles (EV) sector; including EV manufacturing, charging infrastructure and battery/energy storage.
Automotive-related manufacturing contributes £93 billion turnover and £22 billion value added to the UK economy, and typically invest around £4 billion each year in R&D.
It is expected that demand for EVs will continue to increase as the UK moves closer to its net zero target. This creates an opportunity for Swedish EV manufacturers to expand their operations and enter a growing market that can provide significant commercial opportunities.
Number of charging points needed in the UK by 2030.
To meet this need for charging infrastructure, the UK government has created a £400m EV Charging Infrastructure Investment Fund (CIIF). The CIIF is aimed at supporting businesses in building EV charge points across the country and boost jobs in the industry; making it easier for the population to own an ultra-low emission car and helping to improve air quality and protect the environment. This initiative will be managed on a commercial basis by a private sector fund manager and government investment of £200m into the fund will be matched by private investors.
In addition, the UK government’s Road to Zero Strategy outlines a number of ambitious measures including: pushing for charging points to be installed in newly built homes; developing a £40m programme to develop and trial innovative, low cost wireless and on-street charging tech; as well as the launch of an Electric Vehicle Energy Taskforce to bring together the energy and automotive industries to plan for the increase in demand on energy infrastructure that will result from a rise in the use of electric vehicles. The UK is also aiming at developing technology in new charging techniques, including: ultra-fast charging systems, wireless charging, Vehicle to Grid (V2G) charging, charging via roadside infrastructure (e.g. lamp-posts) and solar roofs.
Charging solutions for EVs
Sweden is home to some of the most innovative companies providing charging solutions for EVs. These include solutions for both public and private charging. By establishing a physical presence in the UK, Swedish providers of both public and private EV charging solutions can find an opportunity to satisfy the need for charging infrastructure in the UK. Companies can also make use of the government’s support programmes for developing further innovative charging solutions.
Another area of importance to consider during the journey to net zero is the EV electrified supply chain, particularly batteries/energy storage solutions. It is estimated that the requirement for UK-based battery manufacturing capacity will be of 60-200 GWh per annum up to 2040. This is the equivalent of 4 to 13 battery cell production facilities operating at around 15 GWh per site. Up to 1.6 million battery electric vehicles are forecast to be produced per annum in the UK by 2040. By 2030 there is expected to be demand for manufacturing capacity from 70 to 100 GWh per annum in the UK.
Clusters
Business cases
Meet the Swedish businesses that are making it in the electric vehicles industry.
The Faraday Battery Challenge
In order to meet this demand, the UK government has created the Faraday Battery Challenge (FBC). The FBC is a 4-year, £246m investment round in a key part of the government’s Industrial Strategy. It will deliver a coordinated programme of competitions with the aim of boosting R&D and expertise in battery technology. The FBC’s competitions are divided into three streams: research, innovation and scale-up. The programme is designed to convert the UK’s world-leading research into market-ready technology. In addition, the UK government has partnered with the automotive industry to create the Automotive Transformation Fund (ATF). The ATF is a long-term programme designed to enable the UK to build the world’s most comprehensive and compelling electrified vehicle supply chain. It offers a share of up to £1bn of funding for industrial research and capital projects. The ATF will support UK-based manufacturers in serving global markets, increasing skilled jobs and building the foundations for the automotive industry to transition to zero-emission technologies. The programme will support strategically significant capital and R&D investments in the UK and will begin by focusing on companies involved in the following technologies: batteries, including cells (‘gigafactories’); battery management systems; electric machines; drives and integrated power electronics; and fuel cells.
Swedish companies manufacturing and developing innovative battery/energy storage solutions should also consider the UK; both as an expansion market with growing business opportunities and as a partner for funding, researching and developing new technologies within the EV supply chain.
Clusters
EV manufacturing
Birmingham, Solihull, Oxford, Swindon, Deeside, Halewood.
EV Charging Infrastructure
Aberdeen, Edinburgh, Glasgow, Belfast, London, Bristol, Birmingham, Brighton
Batteries/Energy Storage
Belfast, Edinburgh, Cardiff, Dorset, Bristol, Bath, Portsmouth, Leicester, Leeds
Grants, tax reliefs and other incentives for businesses
Further support/
DBT contact
Tell us about your investment plans for the UK; why you are considering the UK and what you need to make it happen. Ask us any questions you might have! We would be delighted to discuss with you how we can best support.