EV batteries are a £2 billion business, attracting the biggest venture capital investment of ANY sector since 2018
- UK EV battery start-ups have secured £2.1 billion in venture capital investment in just six years
Electric batteries may spark environmental debates, but the economic benefits appear to be a foregone conclusion.
UK-based EV battery start-ups have received more than £2 billion in venture capital (VC) investment since 2018, a new report has found.
As a result, Britain is now the fourth largest recipient of EV battery investment over that period.
UK-based EV battery start-ups have received more than £2 billion in venture capital (VC) investment since 2018, a new report has found.
A report from the UK Research and Innovation (UKRI) Faraday Battery Challenge shows that 2023 was a particularly high-performing year, with EV battery start-ups receiving £1 billion in private investment domestically.
With £2.1 billion invested in six years, Britain now trails only the US, China and Sweden when it comes to investment growth in this sector.
The Faraday Battery Challenge alone attracted £770 million in venture capital investment in 2018.
The report also shows that global venture capital funding for EV batteries has increased 30-fold over the past decade, with global venture capital funding for EV batteries set to reach £6.1 billion by 2023.
Specifically, the top venture capital investment segment in Britain over the past six years has been the recycling and second-use of EV batteries, raising almost £1 billion (£940 million).
This venture capital investment is also good news for UK employment, with almost half of UK EV jobs created by start-ups founded in the last decade.
Thomas Bartlett of Faraday Battery Challenge said: ‘The global EV battery ecosystem is accelerating at an unprecedented pace, attracting record-breaking investments that are leading to more and more innovations and success stories.
‘The UK EV battery ecosystem is reaping the benefits of this boom, as we’ve seen Faraday Battery Challenge-funded startups and scale-ups raise more than $1.6 billion in venture capital funding since 2018.
“The majority of this investment has been made in the last two years alone, indicating that the demand for investment is only getting stronger.”
