- Battery demand is soaring as BEV production is set to double by 2035, with the UK aiming to export 80% of its EV output.
- Record-breaking UK EV sales and booming US demand are driving the need for stronger battery supply chains.
- Key challenges include securing battery materials and localising production to meet regulatory requirements by 2027.
Global battery demand surges as UK eyes export growth
The global battery-electric vehicle (BEV) market is expanding rapidly. According to the latest report from the Advanced Propulsion Centre UK (APC), BEV production will double between 2027 and 2035. Battery demand is also soaring. In 2024, global battery consumption surpassed 1 terawatt-hour (TWh) for the first time. By 2035, it is expected to exceed 4 TWh.
This growth presents major opportunities, especially for the UK’s automotive export market. Though domestic demand is rising slowly, 80% of UK production is expected to go overseas. This comes as the UK’s EV market hits record highs. In March 2025, over 68,000 fully electric cars were sold, making it the best-ever month for EV sales. As demand increases, so does the need for reliable battery supply chains.
Julian Hetherington, Automotive Transformation Director at the APC, commented:
“We are in a period of transition and there remain many obstacles to overcome such as affordability, regulatory frameworks and infrastructure – which is to be expected. However, transition is often accompanied by varying levels of uncertainty, and this is just what we currently see. We review the industry outlook for the automotive sector on a quarterly basis and there is substantial change in the global context from the last period to this. It is not unexpected at this stage in our transitional journey, but what remains consistent is the outlook to 2035, with BEV production figures expected to double.”
Global markets are booming. The US saw EV sales surpass 1.3 million in 2024, and saw incredible consumer demand over Q1 of 2025. The UK’s exported EVs and battery components will help meet this demand, solidifying its role as a key supplier in the global market.
However, supply chain challenges remain. The availability of critical materials like anode and cathode components is a key concern. To remain competitive, the UK must localize battery production by 2027 to meet regulatory requirements.
Battery technology is also evolving. Lithium iron phosphate (LFP) batteries continue to dominate due to their affordability and durability. Meanwhile, sustainability is becoming a major focus. Recycling and circular material use are gaining momentum.
Hetherington continued:
“It is exciting to see a strong focus on recycling and materials circularity. This will be a key part of the sustainability and full life cycle story for BEVs, and there is increasing momentum surrounding this and new opportunities for partnerships at both supply chain level and Tier 1 original equipment manufacturers (OEMs). Whilst there is some near-term uncertainty, the transformation trajectory for the automotive sector seems near certain.”
Despite short-term uncertainty, the long-term outlook is strong. Experts believe that investment, innovation, and strategic partnerships will drive the industry forward. With the right approach, the UK can cement its place in the global BEV market.
