Written evidence from Danecca Ltd (BEV0031)





  1. Batteries are not like oil. We will have energy security once we can generate clean renewable power and have sufficient storage capabilities, while fossil fuel-based energy security requires a continuous flow of energy into the UK from the North Sea and other nations.


  1. This unlocks a much more economically efficient future for the UK, requiring significantly fewer imports once established. Furthermore, as battery packs are not "consumed", and the frequency at which they have to be replaced is low, world events like Russia's invasion of the Ukraine will not have impacts like it has on energy prices, inflation and cost of living.


  1. Other nations and regions of the world will also have these same benefits, therefore, the future economic competitiveness of the UK will be linked in part to the cost at which we can purchase, use and recycle battery packs.


  1. Location of manufacture is key to UK competitiveness. The Faraday institution expect the UK will have demand for 200GWh of batteries per year by 2040 for grid energy storage and transport. Even with performance improvements, this is well over a million tons of battery pack manufacture per year, and a corresponding amount to be recycled into new product when they reach end of life.


  1. The required "circular" economy, of cell and battery manufacturing, distributors, installers, decommissioners and recyclers must meet or exceed the competitiveness of those in other geographies.


  1. If the UK doesn't have the full ecosystem of battery recyclers, cell manufacturers, pack design, system implementers and R&D, then the required circular economy will have significant disadvantages compared to regions and countries who do.  While cell costs are predicted to fall further (once we pass the short-term cost increases due to mining constraints), the costs of shipping them from Asia will not fall, this is currently around 8% of the final price in the UK.  


  1. Danecca believes that the UK should have this complete system of companies and organisations operating here.  Maintaining the "mass" of lithium, copper and other required metals that are in the UK is the new measure of energy security and independence.


  1. UK policy lags industry and other nations. The focus of the last few years of battery R&D funding at the cell technology level has developed some notable talent, and a number of spin-off companies in material R&D and knowledge sectors such as battery management systems and algorithms.


  1. These are important, but do not form part of the main circular economy loop.  Furthermore, without the investment in the industrial capability to convert this and future technologies into final battery packs, the benefit of the resulting IP goes to foreign competitors who have a more rounded approach to the industry.

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  1. The UK needs to develop a balanced, system's thinking, approach to the battery industry that it wants to have in 2040, and lay the groundwork now to get there.  


  1. We propose the following:


a)     Build an eco-system of SMEs now that will grow to be the circular loop in 2040


b)    Identify end-user problems that need solutions and use funding to accelerate these.  Do not direct the technology. Use the SMEs, who have direct links with the customers to find the best solutions


c)     Enable SMEs to grow capacity as well as capability.  The battery industry and energy security that the UK can derive from this are not just a knowledge-based endeavour, but also require investment in manufacturing capacity

About Danecca. Danecca was founded in 2018 by Danson Joseph and a small team. We use our significant prior experience from designing networks and battery packs at the National Grid, Jaguar Land Rover, and other organisations to lower the barrier to entry for companies who need to transition away from fossil fuels.  We do this by sharing knowledge of battery pack design and have established a mid-scale production capability.  We operate the UK's most flexible battery pack manufacturing facility from Silverstone, building battery packs for the automotive and aerospace industries.