EV batteries are a £2bn business – attracting the largest VC investment of ANY sector since 2018

Electrical batteries may trigger environmental debates, however the financial positives appear to be a finished deal.

UK-based EV battery start-ups have acquired over £2billion in enterprise capital (VC) funding since 2018, a brand new report has discovered.

Consequently, Britain is now the fourth largest recipient of EV battery funding in that interval.

A report by the UK Analysis and Innovation’s (UKRI) Faraday Battery Problem discovered that 2023 was a very properly performing yr, with homegrown EV battery start-ups receiving £1billion of personal funding.

With £2.1billion of funding in six years the UK is now solely behind the US, China and Sweden by way of funding progress on this sector.

The Faraday Battery Problem alone has raised £770million in VC funding in 2018.

The report additionally discovered that international EV battery VC funding has risen thirty-fold over the previous decade, with international EV battery VC funding reaching £6.1billion in 2023.

Particularly, the highest VC funding phase within the UK within the final six years is EV battery recycling and second-use which accounts for practically £1billion (£940million) raised.

This VC funding can also be excellent news for UK jobs, with practically half of British EV jobs having been created by start-ups based within the final 10 years.

Thomas Bartlett, of Faraday Battery Problem, stated:  ‘The worldwide EV battery ecosystem is accelerating at an unprecedented tempo, attracting record-breaking investments which might be resulting in rising improvements and success tales. 

‘The UK’s personal EV battery ecosystem is reaping the advantages of this growth, as we now have seen Faraday Battery Problem-funded start-ups and scale-ups elevate over $1.6billion in VC funding since 2018. 

‘The majority of this funding has been made within the final two years alone, suggesting that demand to take a position is just getting stronger.’