A new study has found that a move to electric vehicles could generate a potential growth of £24bn over the next five years for the UK economy. The research was done by the Advanced Propulsion Centre, which 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 of saving 50 million tonnes of CO2 emissions from the automotive industry.
As all passenger cars will be required to have some form of electrification by 2030, the forecast all-electric industrial revolution in the automotive industry is crucial to the UK. We've already had a preview of what a carbon-neutral economy could do to the environment as traffic dropped during the pandemic.
The study identifies 12 key opportunities for UK industry in the future manufacture and supply chain for electric vehicles. While the research has pointed out 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 shows that given the forecast global demand for electrified propulsion technologies, suppliers will need to increase their capacity at least 10-times over the 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.”
There is a global potential economic growth of more than £97bn. As of right now the UK is already well placed and capable of delivering its contribution to 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.”
The electric market is constantly expanding as technologies are advancing and regulations are getting stricter for internal combustion engines. Although outstanding news for the economy, these results do not surprise us at WhichEV, as we believe that we are slowly and steadily heading to an all-electric industrial revolution and there is no more time for a U-turn.