UK needs six gigafactories by 2030 – Faraday Institution
Latest analysis predicts that we’ll need large, high-volume battery-manufacturing facilities each producing 20 GWh worth of batteries per year.
With increasing electrification of transport across the world, there’s a growing need for high-end battery supplies, produced by so-called gigafactories. In 2022, a report by the independent Faraday Institution estimated that Europe-wide gigafactory capacity would reach 450 gigawatt hours (GWh) per year by 2030. In an update to that report published this week, the institution now puts the figure closer to 1,350 GWh per year.
Tesla gigafactory, Berlin-Brandenburg, photo by Michael Wolf
Currently, a single gigafactory operates in the UK: the AESC facility in Sunderland which opened in 2012 produces 1.8 GWh each year. A second AESC is under construction and should open next year; it will add a further 15.8 GWh of capacity. The Agratas facility in Somerset, due to open in 2026, will add an additional 40 GWh.
The Faraday Institution update predicts that these three sites aren’t nearly enough, and that to meet expected demand the UK will need six large, high-volume battery-manufacturing gigafactories by 2030 – and 10 of them by 2040. Alternatively, say the authors, fewer but larger gigafactories could provide the same total capacity.
- Read the full update: UK electric vehicle and battery production potential to 2040, The Faraday Institution UK Gigafactory Outlook (September 2024)
Many countries are already seeking to capitalise on the economic opportunities of this increased demand. In the UK, recent announcements by those including AESC and Tata Group have helped generated excitement around the potential for a new, dynamic and highly skilled industry in the UK. Indeed, the new Faraday update estimated that 270,000 jobs could be supported by the EV and battery industry in the UK by 2040.
To achieve this, say the authors of the new update, the UK needs to move faster to keep up with its competitors across Europe. The battery-manufacturing plants announced or already under construction in the UK are expected to provide a combined capacity of 57.6 GWh by 2030, equivalent to some 4% of total European GWh capacity, way behind Germany at 21% as well as six other countries.
Existing gigafactory development plans still fails to address some 47% of projected demand for UK batteries by 2030, and 71% of the demand expected by 2040.
While the UK government have implemented the UK Battery Strategy and range of policies and incentives to encourage the industry, the authors of the update say more clearly needs to be done – and soon. They make a number of recommendations, such as attracting inward investment, strengthening component manufacturing across the UK, investment in UK-based refining and processing facilities, and enhanced supply chain resilience.
Stephen Gifford, Chief Economist at the Faraday Institution, says: ‘There is a growing sense of optimism that a highly productive and sustainable battery manufacturing industry can be built in the UK. By 2040, a successful industry could employ 170,000 people in EV manufacturing, 35,000 people in gigafactories and 65,000 people in the battery supply chain.’
Professor Martin Freer, CEO of the Faraday Institution, adds: ‘”Next-generation batteries – such as solid-state, lithium-sulfur and sodium-ion technologies – offer the UK an opportunity to take a market-leading position globally in applications beyond automotive. By building on current advantages – cutting edge research and world-leading companies – the UK could establish a large-scale domestic manufacturing capability. But the UK must move quickly to exploit its competitive advantage.’
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