Electric cars could benefit the UK economy by £24bn provided suppliers can rapidly ramp up their capacity to ten times current levels, according to new research published by the Advanced Propulsion Centre (APC).
The ‘Strategic UK opportunities in passenger car electrification’ report argues that with passenger cars requiring some form of electrification by 2030, the technology to achieve this will be crucial to the UK economy post COVID-19.
The report highlights market growth opportunities of £12bn for batteries, £10bn for power electronics and £2bn for electric machines (i.e. electric motors) but claims that delivering on these opportunities will require suppliers to ramp up their capacity to 10 times current levels.
“The electrification of vehicles is happening at pace,” said APC CEO Ian Constance, “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.”
With a global potential of over £97bn, the UK is already well placed and capable of delivering this growth with established global producers, an extensive chemical supply chain and leading research and development expertise.
“The report reveals that opportunities for UK-based companies are available right across the spectrum,” added Constance. “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.’