This is an extract from a recent report “Assessment of the Global Landscape for Sodium-Ion Batteries and Their Potential in India” prepared by the Indian Ministry of New and Renewable Energy. This extract specifically focuses on UK capabilities in the BESS sector.
The Sodium-ion battery (SIB) landscape in the UK encompasses a diverse array of organisations collaborating across sectors to advance research, development, and deployment efforts. Over the past decade, the battery ecosystem has witnessed significant innovation, enabling it to meet the necessary cost and performance requirements for widespread adoption. According to a recent study conducted by the Government Office for Science, the UK ranks among the top 5 global leaders in terms of research and patent output, underscoring its importance on the global stage. Experts have specifically highlighted the UK’s strengths in solid-state and cathode research. Additionally, the UK holds a significant comparative advantage in BESS and SIBs for stationary storage applications, positioning it to lead in their commercialisation and industrialisation efforts potentially.
On December 6, 2023, the UK released its first battery strategy, in conjunction with the advanced manufacturing plan, acknowledging the crucial role of batteries in the country’s energy transition and its commitment to achieving net zero emissions by 2050. The government has pledged to allocate over £2 billion in R&D funding for both battery technologies and their applications in the automotive industry. This funding will be utilised to support the manufacturing and advancement of zero-emission vehicles, as well as their batteries and supply chain, for 5 years until 2030.
The government is actively promoting the battery sector and fostering the advancement of future battery technologies through a variety of initiatives. These encompass a wide array of programs as discussed below:
Innovation
The Faraday Institution: The Faraday Institution is a registered charity with an independent board of trustees, headquartered at Harwell Science and Innovation Campus. The Faraday Institution serves as the leading independent institute in the UK for researching electrochemical energy storage. It focuses on various aspects such as skill development, market analysis, and early-stage commercialisation. By harnessing the collective expertise of universities and industry, the Faraday Institution aims to establish the UK as the premier destination for advancing electrical storage technologies in the automotive and related sectors. The institution takes the lead in implementing research programs that are directly applicable to real-world scenarios. It collaborates with 27 universities, 85 industry partners, and over 500 researchers across 10 major projects, encompassing both current and future battery technologies.
Innovate UK: Innovate UK is a UK government agency that supports business-led innovation. It has been involved in funding and supporting R&D in SIB technology. Innovate UK has funded a number of projects that have helped to develop new SIB materials, designs, and manufacturing processes. It has also supported the establishment of the United Kingdom Battery Industrialisation Centre (UKBIC), which provides support to businesses that are developing and commercialising SIB technologies.
Advanced Propulsion Centre: The Advanced Propulsion Centre (APC), formed in 2013, has received a substantial amount of industry investment and government grant funding, totalling over £1.4 billion. Its primary objective is to assist the automotive industry in addressing the decarbonisation challenges outlined by the government and the Automotive Council. As a result, the APC collaborates with both the automotive industry and academia on advanced R&D projects, specifically focusing on late-stage collaboration to expedite the industrialisation of technologies. In a recent announcement, the APC disclosed that it has secured £87 million in funding from both the government and industry partners. This funding will be utilised to advance cutting-edge EVs technology, encompassing projects related to luxury EV platforms, lithium refining, and solid state battery manufacturing.
High-Value Manufacturing (HVM) Catapult: The HVM Catapult comprises the Energy Innovation Centre at Warwick Manufacturing Group (WMG) and The Centre for Process Innovation. These two centres play a crucial role in national research, focusing on the entire R&D process and battery material development, scale-up, and recycling support. Recently, they have secured substantial funding of £12 million for the establishment of an Advanced Battery Materials Innovation Facility. This state-of-art facility will enable the synthesis, scale-up, formulation, and validation of innovative active materials and solid-state electrolytes.
Faraday Battery Challenge (FBC): The FBC’s objective is to position the UK as a leading force in battery technology. FBC is dedicated to advancing innovations in the battery supply chain, from laboratory breakthroughs to large-scale production. The FBC, a program under the UK Research and Innovation (UKRI) Challenge Fund, has successfully established itself with the support of prominent delivery partners such as Innovate UK (lead), UK Battery Industrialisation Centre, and Faraday Institution.
Automotive Transformation Fund: The Automotive Transformation Fund (ATF), initially disclosed in 2020, has facilitated the UK in attracting several noteworthy original equipment manufacturers (OEM) and supply chain investments. This has expedited the UK’s progress towards electrification, as the industry has established ambitious targets for inward investment. The ATF funding aids various companies involved in the EVs’ supply chain, encompassing batteries, electric drive units, fuel cell systems, and other related technologies
Longer Duration Energy Storage Demonstration Competition: The Longer Duration Energy Storage Demonstration (LODES) is a ground-breaking contest that seeks to expedite the commercialisation of cutting-edge energy storage projects with longer durations. Through LODES, the government has provided support for the advancement of BESS making a substantial capital funding of £69 million available to start-ups. In a significant move, the UK Government has recently announced an investment of £11 million in 20 winning projects from the competition. These projects focus on developing technologies across the battery value chain, including areas such as artificial intelligence and digital tools to enhance battery performance, future technologies like lithium-metal anodes and SIBs, and improved recycling technologies.
Ayrton Fund: The Ayrton Fund aims to accelerate the clean energy transition in developing countries, by creating and demonstrating innovative clean energy technologies and business models. It also aims to demonstrate UK leadership and expertise in cutting global emissions through world-leading innovations. Some of the international funding programmes as part of this initiative include the International Energy Storage Challenge, led by the Faraday Institution, the Clean Energy Innovation Facility (CEIF) programme funded by the Department for Energy Security and Net Zero (DESNZ) and Transforming Energy Access (TEA) which is a flagship programme of Foreign, Commonwealth and Development Office (FCDO).
Financing
British Business Bank (BBB): The BBB collaborates with industry players in the market to ensure that smaller businesses have the necessary financial resources and information to fund their innovative processes. By analysing the market and utilising evidence, they identify areas where support is lacking and take a commercially driven approach to address these gaps. They aim to maximise their impact on smaller businesses by combining private-sector capital with government funding. The BBB offers various finance programs, each tailored to address specific market failures and enhance access to finance for smaller businesses. Among these programs, several are dedicated to strengthening the battery supply chain in the UK.
UK Infrastructure Bank (UKIB): The UKIB focuses on investing in projects that not only generate a financial return but also attract significant private capital over time. In September 2023, the UKIB released a strategy update that outlined its offerings for short-duration BESS. This included a mezzanine loan product that aims to encourage more banks to provide funding for such projects. Furthermore, the UKIB is committed to supporting the development of markets for long-duration storage by assuming greater risk than private investors. Additionally, the UKIB also invests in projects related to cell manufacturing and the critical minerals supply chain.
Supply chain
Critical mineral demand modelling: The future demand for critical minerals in the UK is highly uncertain as it depends on future battery chemistries, battery energy density, the EV market, costs, and technological developments. Multiple different scenarios could occur depending on when battery technologies become commercially available. Next-generation technologies including silicon anodes, solid-state batteries and SIBs may shift raw materials supply chains.
Guaranteeing the accessibility of critical minerals: The UK government is preparing for a significant increase in critical mineral demand by 2030. However, there are concerns about potential supply shortages. To tackle this, the government has outlined its Critical Mineral Strategy, which aims to accelerate domestic capabilities, foster international collaboration, and improve international markets. Overall, the UK government is committed to ensuring a sustainable and reliable supply of critical minerals. Through support and collaboration, they aim to address the challenges posed by increasing demand while promoting responsible practices in the industry.
Manufacturing
Competitive electricity price for battery manufacturing: Battery production, along with its associated activities, requires a significant amount of energy and relies on substantial power connections. The APC predicts that the largest gigafactory in the UK will consume more than 2 terra watt hour (TWh) of electricity annually once it is fully operational. To enhance the competitiveness of the UK’s business environment, the government has consistently implemented various programs to reduce energy costs.
The Energy Bill Relief Scheme aimed to alleviate the burden of high gas and electricity prices for non-domestic consumers. The scheme offered a discount on wholesale gas and electricity prices from 1 October 2022 to 31 March 2023. Furthermore, the Energy Bills Discount Scheme has been introduced, extending the benefits of the Energy Bill Relief Scheme until April 2024.
Furthermore, the Net Zero Growth Plan, released in March 2023, aims to ensure that Britain’s wholesale electricity prices become one of the most affordable in Europe by 2035. This plan outlines the government’s strategies to enhance energy independence, security, and resilience in the UK.
UK Battery Industrialisation Centre: The UK Battery Industrialisation Centre (UKBIC) serves as a hub for manufacturing development. With its state-of-the-art facility spanning 20,000 m2, UKBIC offers open-access infrastructure and expertise in manufacturing and scale-up. Renowned worldwide, UKBIC plays a crucial role in supporting the advancement of battery technologies in the UK. By mitigating risks associated with commercialisation and facilitating technology development, UKBIC paves the way for seamless expansion and increased investment opportunities for firms in this sector.
Skill development
Fostering requisite skills for battery sector development: A thriving battery industry in the UK necessitates a highly skilled workforce that possesses expertise across the entire battery value chain and at all levels. The availability of skilled individuals is becoming increasingly crucial for companies seeking to invest in battery development and manufacturing on a global scale.
In recent years, various organisations such as the Automotive Council Skills group, the Faraday Institution, and HVM Catapult have collaborated to gain a comprehensive understanding of the job roles and corresponding skill levels required in this industry. Additionally, the government has placed employers at the core of the skills system to ensure that the provision of skills aligns with both current and future demands. They offer a wide range of high-quality training options, including apprenticeships and flexible
courses like Skills Bootcamps.
Access the report here
