Market Overview

The UK Lithium-ion Battery Market reached USD 1,779.59 Million in 2024 and is projected to grow to USD 4,619.12 Million by 2033, exhibiting a CAGR of 11.18% during 2025–2033. Growth is driven by strong demand for electric vehicles, government incentives promoting domestic battery production, and rising energy storage needs supporting renewable integration. Increasing investments in gigafactories, battery recycling technologies, and local supply chains are improving national production capacity and reducing dependence on imported components. Additionally, the UK’s strategic focus on strengthening EV infrastructure and establishing advanced battery service centres accelerates technology adoption across automotive, industrial, and energy segments. This robust ecosystem positions the UK as a growing hub for battery manufacturing and innovation over the coming decade.

Study Assumption Years

• Base Year: 2024
• Historical Period: 2019–2024
• Forecast Period: 2025–2033

UK Lithium-ion Battery Market Key Takeaways

• Market Size (2024): USD 1,779.59 Million
• CAGR (2025–2033): 11.18%
• Localization momentum driven by gigafactory investments such as Volklec’s planned GBP 1 Billion facility by 2030
• New battery lifecycle centres enhancing repair, remanufacturing, and storage capabilities
• Government-backed recycling initiatives supporting recovery of lithium, nickel, and cobalt
• Comprehensive segmentation by product type, power capacity, application, and region

UK Lithium-ion Battery Market Growth Factors

In the UK, the lithium-ion battery market is projected to grow substantially because people increasingly adopt electric vehicles and due to a domestic battery manufacturing strategy. UK government makes policy and net-zero ambitions electrify, so people construct gigafactories and advance production lines throughout the battery supply chain. Volklec has partnered with the UK Battery Industrialisation Centre to build lithium-ion batteries based on Volterra's licensed technology, and plans a 1 GWh line in 2026, and a GBP 1 Billion gigafactory in 2030. Both projects will increase domestic battery production and reduce the UK's reliance on imported batteries for future electric vehicles.

The adoption of EVs in the UK has created a demand for lifecycle management systems. In 2025, DHL Supply Chain and Cox Automotive opened the United Kingdom's largest electric vehicle battery service centre for repair, remanufacturing, logistics services and safety compliance in Rugby, dedicated to prolonging the lifecycle of batteries and improving the efficiency of fleet operations.

Battery recycling is seen as a growth area in an era when the UK is prioritizing a circular economy and raw material security. In 2025, Mint Innovation, Jaguar Land Rover, LiBatt Recycling and WMG were awarded £8.1 Million of funding from the £2.5 Billion DRIVE35 program to invest in low carbon recycling of lithium, nickel, and cobalt from batteries. These advances will create a strong battery supply chain with applications in consumer electronics, automotive, and energy storage.

Sample Request Link:- https://www.imarcgroup.com/uk-lithium-ion-battery-market/requestsample

UK Lithium-ion Battery Market Segmentation

Product Type Insights

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

Power Capacity Insights

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

Application Insights

• Consumer Electronics
• Electric Vehicles
• Energy Storage
• Others

Regional Insights

The market includes major regions such as London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others. While the source does not specify the leading region, the presence of major research hubs and industrial clusters across the Midlands and South East indicates strong development potential. Regional initiatives, technology partnerships, and manufacturing investments collectively support market expansion across the UK.

Request Customization:- https://www.imarcgroup.com/request?type=report&id=41341&flag=E

About Us

IMARC Group is a global management consulting firm offering market intelligence, business strategy, feasibility studies, and procurement research across a wide range of industries.

Contact Us
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
India: +91 120 433 0800
US: +1-201971-6302