UK Lithium-ion Battery Market

UK Lithium-ion Battery Market Overview:

The UK lithium-ion battery market size reached USD 1,779.59 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 4,619.12 Million by 2033, exhibiting a growth rate (CAGR) of 11.18% during 2025-2033. Strong demand for electric vehicles, government incentives for battery production, and growing energy storage needs are some of the factors contributing to the UK lithium-ion battery market share. Investments in gigafactories, recycling technologies, and local supply chains are also gaining momentum, supporting domestic battery manufacturing and reducing import dependency.

UK Lithium-ion Battery Market Trends:

Shift toward Local Battery Manufacturing

Efforts to establish lithium-ion battery production closer to demand centers are picking up. A domestic manufacturer plans to build cells using licensed technology, with support from experienced international specialists to ensure quality. Initial production will take place at an existing facility, focusing on electric transport, grid storage, and advanced industrial uses. The approach reflects a move to strengthen local supply resilience and reduce dependence on external sources. Expansion is already in motion, with larger-scale production lines and a dedicated facility planned over the coming years. This signals rising confidence in local capabilities to meet clean energy goals, support electrification, and boost skilled employment in high-tech manufacturing, all while anchoring more of the value chain within national borders. These factors are intensifying the UK lithium-ion battery market growth. For example, in February 2025, Volklec, a UK startup, announced plans to produce lithium-ion batteries using Far East Battery’s tech, with manufacturing at UKBIC in Coventry. Two cell types would target e-mobility, energy storage, and high-value sectors. A 1GWh line would follow in 2026. Volklec plans a GBP 1 Billion gigafactory by 2030, aiming to create 1,000 jobs. FEB would also supply experts to support production quality.

New Facility Enhancing EV Battery Lifecycle Management

A new facility has been launched to handle repair, remanufacturing, storage, and logistics for electric vehicle batteries. Designed to serve manufacturers and fleet operators across the country, it provides centralized support for managing battery packs throughout their lifecycle. The site meets government regulations and complies with current safety standards, including measures to address thermal runaway risks. With dedicated space and infrastructure tailored for battery handling, it offers a scalable solution for growing demand. The operation combines technical expertise with secure logistics, aiming to streamline and standardize how lithium-ion batteries are serviced, transported, and stored. It reflects a broader move toward more organized, compliant systems for battery management as electric vehicle adoption increases. For instance, in May 2025, DHL Supply Chain and Cox Automotive launched the UK’s largest EV battery service center in Rugby, within DHL’s 146,000-square-foot EV Centre of Excellence. The 35,000-square-foot facility focuses on repair, remanufacturing, logistics, and storage of lithium-ion batteries. It supports manufacturers and fleet operators nationwide, addressing key safety issues like thermal runaway. The site meets government regulations and current battery safety standards, offering a full-service solution for EV battery lifecycle management.

UK Lithium-ion Battery Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on product type, power capacity, and application.

Product Type Insights:

• Lithium Cobalt Oxide
• Lithium Iron Phosphate
• Lithium Nickel Manganese Cobalt
• Lithium Manganese Oxide
• Others

The report has provided a detailed breakup and analysis of the market based on the product type. This includes lithium cobalt oxide, lithium iron phosphate, lithium nickel manganese cobalt, lithium manganese oxide, and others.

Power Capacity Insights:

• 0 to 3000mAh
• 3000mAh to 10000mAh
• 10000mAh to 60000mAh
• More than 60000mAh

The report has provided a detailed breakup and analysis of the market based on the power capacity. This includes 0 to 3000mAh, 3000mAh to 10000mAh, 10000mAh to 60000mAh, and more than 60000mAh.

Application Insights:

• Consumer Electronics
• Electric Vehicles
• Energy Storage
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes consumer electronics, electric vehicles, energy storage, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Lithium-ion Battery Market News:

• In July 2025, Mint Innovation, along with Jaguar Land Rover, LiBatt Recycling (Recyclus Group), and WMG at Warwick, secured GBP 8.1 Million, including GBP 4.05 Million from the UK government, to scale its low-carbon lithium-ion battery recycling tech. The project would recover lithium, nickel, and cobalt for domestic EV supply chains. It's backed by the GBP 2.5 Billion DRIVE35 programme aimed at boosting UK-based EV manufacturing and job creation.

UK Lithium-ion Battery Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK lithium-ion battery market performed so far and how will it perform in the coming years?
• What is the breakup of the UK lithium-ion battery market on the basis of product type?
• What is the breakup of the UK lithium-ion battery market on the basis of power capacity?
• What is the breakup of the UK lithium-ion battery market on the basis of application?
• What is the breakup of the UK lithium-ion battery market on the basis of region?
• What are the various stages in the value chain of the UK lithium-ion battery market? 
• What are the key driving factors and challenges in the UK lithium-ion battery market?
• What is the structure of the UK lithium-ion battery market and who are the key players?
• What is the degree of competition in the UK lithium-ion battery market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK lithium-ion battery market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK lithium-ion battery market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK lithium-ion battery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.