- UK EV battery startups have received £2.1bn venture capital investment in just 6 years
Electric batteries may spark environmental debates, but the economic positives seem to be a given.
UK-based electric vehicle battery startups have received more than £2 billion in venture capital (VC) investments since 2018, according to a new report.
As a result, Britain is now the fourth largest recipient of EV battery investments in that period.
UK-based electric vehicle battery startups have received more than £2 billion in venture capital (VC) investments since 2018, according to a new report, making Britain
A report from the UK Research and Innovation (UKRI) Faraday Battery Challenge found that 2023 was a particularly good year, with local electric vehicle battery startups receiving £1bn of private investment.
With investment of £2.1bn over six years, the UK is now behind only the US, China and Sweden in terms of investment growth in this sector.
The Faraday Battery Challenge alone has raised £770 million in venture capital investment in 2018.
The report also found that global venture capital funding for electric vehicle batteries has increased thirty-fold in the last decade, and global venture capital funding for electric vehicle batteries will reach £6.1 billion in 2023.
Specifically, the largest segment of venture capital investment in the UK over the past six years is recycling and second use of electric vehicle batteries, accounting for almost £1bn (£940m) raised.
This venture capital investment is also good news for UK jobs, as almost half of British EV jobs have been created by start-ups founded in the last 10 years.
Thomas Bartlett of Faraday Battery Challenge said: “The global EV battery ecosystem is accelerating at an unprecedented pace, attracting unprecedented investment that is leading to more and more innovations and success stories.”
‘The UK’s own EV battery ecosystem is reaping the benefits of this boom, as we have seen startups and scale-ups funded by the Faraday Battery Challenge raise over $1.6 billion in venture capital funding since 2018 .
“Most of this investment has been made in just the last two years, suggesting that investment demand is only getting stronger.”
