In June 2019 the UK became the first major global economy to pass legislation requiring the UK to achieve ‘net zero’ greenhouse gas (GHG) emissions by 2050, ending the UK’s contribution to global warming.

Cars and vans alone represented one fifth of UK domestic CO2 emissions in 2018, and accounted for 68% of domestic UK transport emissions in 2020. Ending the sale of new petrol and diesel cars and vans is therefore a key part of reducing long-term transport air pollution and GHG emissions.

The Government is committed to phasing out the sale of new petrol and diesel cars and vans by 2030. From 2035, all new cars and vans must be zero emissions at the tailpipe. These phase-out dates will reduce GHG emissions, with savings equivalent to almost five million fewer cars on the road each year by 2035.

Government has already spent over £2 billion to facilitate the transition to zero emission vehicles and significant progress has been made toward meeting these targets. Plug-in vehicles accounted for 19% of all UK new road using vehicle registrations in 2022, up from 15% in 2021 and 9% in 2020.

Manufacturers that have committed to transition to zero emission vehicles by 2030 already amount to 65% of the UK car market, with all major manufacturers committed to selling 100% zero emission vehicles by 2035. The Government’s world leading Zero Emission Vehicle mandate will continue to provide a strong investment signal to vehicle manufacturers, supporting long-term reduction in prices.

A robust public chargepoint network will be required to support this transition. In March 2022 the Government published its Electric Vehicle (EV) Infrastructure Strategy, setting out its plan to deliver this. There are now over 45,500 public chargepoints across the country. The Government expects the majority of public chargepoints to be delivered by the private sector, with over £6 billion already committed by the UK charging industry to be spent before 2030. Government investment is focused in two areas where the commercial case is not as strong – local on-street charging infrastructure and supporting rapid charging along the strategic road network.

EV Rollout

The transition to zero emission vehicles is well underway. In March 2023 there were over 1.2 million licensed plug-in vehicles in the UK, which is 3% of the total vehicle fleet. The number of plug-in vehicles has increased by 45%, compared to the end of March 2022.
Plug-in vehicles accounted for 19% of all UK new road using vehicle registrations in 2022, up from 15% in 2021 and 9% in 2020 (Government statistics)
Industry data shows that, in July 2023, 16.0% of new cars sold in the UK were fully electric, with nearly a quarter of all new cars sold having a plug (SMMT data).
According to industry data, in 2022, the UK had the second highest number of battery electric van sales in Europe (ACEA data).

Zero Emission Vehicle Mandate

The Government announced in the Net Zero Strategy that it will introduce a Zero Emission Vehicle (ZEV) mandate setting targets for a percentage of manufacturers' new car and van sales to be zero emission each year from 2024. This will deliver on the Government’s phase out dates by providing a clear investment signal to industry.
On 30 March, the UK Government, Scottish Government, Welsh Government, and Northern Ireland Department for Infrastructure published the third and final consultation inviting views on the detailed design and functioning of the ZEV mandate for cars and vans which closed on 24 May. This consultation followed two previous consultations and extensive stakeholder engagement.
The ZEV mandate will establish a trading scheme that will require manufacturers to sell an increasing share of zero emission vehicles each year from 2024, until the phase out of all new non-zero emission vehicles by 2035.
The proposed trajectories for cars and vans are presented below:

For cars:

Year	2024	2025	2026	2027	2028	2029
Target	22%	28%	33%	38%	52%	66%
Year	2030	2031	2032	2033	2034	2035
Target	80%	84%*	88%*	92%*	96%*	100%*

*Target will be set out in future legislation.

For vans:

Year	2024	2025	2026	2027	2028	2029
Target	10%	19%	22%	34%	46%	58%
Year	2030	2031	2032	2033	2034	2035
Target	70%	76%*	82%*	88%*	94%*	100%*

* Target will be set out in future legislation.

Alongside the ZEV mandate, the Government will continue to regulate exhaust CO2 emissions from new non-ZEV cars and vans ensuring emissions from this part of the new vehicle fleet do not increase.
Manufacturers that have committed to transition to zero emission vehicles by 2030 already amount to 65% of the UK car market, with all major manufacturers committed to selling 100% zero emission vehicles by 2035. The Government’s world leading Zero Emission Vehicle mandate will continue to provide a strong investment signal to vehicle manufacturers, supporting long-term reduction in prices.
The Government is committed to transitioning to zero emission cars and vans. Whilst low carbon fuels have an important role to play in decarbonising vehicles on the road now, the Government recognises that some synthetic fuels can be expensive, energy intensive to produce and are not zero emission. Use of these fuels in cars and cans will therefore not meet the Government’s long term climate ambitions.

EV purchase incentives

Government grants have been in place for over a decade to help reduce the up-front purchase price of new zero emission vehicles. The Plug-in Car Grant was introduced in 2011 to help stimulate the early market for zero emission vehicles.
Since the introduction of the Plug-in Car Grant, the Government has provided over £1.6 billion in grant funding, supporting over 500,000 Ultra Low Emission Vehicles (ULEVs), of which over 355,000 are zero emission vehicles.  
Due to the significant success of the Plug-in Car Grant and maturity of the plug-in car market, the grant was closed to new orders on 14 June 2022. However, Plug-in Grants remain available for harder to transition vehicles.
Despite closing the Plug-in Car Grant to new orders, sales of battery electric cars have continued to grow. Any removal of further EV incentives may have an adverse effect on continued growth of the market, but have not in this case.
Plug-in Grants will continue until at least financial year 2023/24 for taxis and motorcycles, and 2024/25 for vans, trucks and wheelchair accessible vehicles. Grants are kept under continual review to ensure they are delivering value for money.
Since the Plug-in Van Grant was launched in 2012, it has supported over 40,000 electric vans and heavy goods vehicles (HGVs) across the UK.

Tax incentives

Zero emission cars, vans and motorcycles do not currently pay Vehicle Excise Duty (VED), in order to stimulate early market uptake. However, given the increase in the number of zero emission vehicles on the roads, it is right to begin to bring EVs into the motoring tax system. This will ensure that all motorists start to pay a fairer tax contribution.
From 2025 zero emission cars, vans and motorcycles will start to pay standard rate VED, in the same way as petrol and diesel vehicles. However, zero emission vehicles will still have preferential first year rates of VED, in comparison to the most polluting vehicles.
New zero emission vehicles are also exempt from the Expensive Car Supplement until 2025. Cars with a list price above £40,000 pay a surcharge, currently set at £355, for the first five years following the first year of registration. The VED Expensive Car Supplement will only be applied to zero emission vehicles registered on or after 1 April 2025, and will not be retrospectively applied to vehicles registered before this date.
Favourable Benefit in Kind rates continue to drive the uptake in new zero emission vehicles. Benefit in Kind rates are 2% for EVs until 2025. From this point Benefit in Kind for EVs will increase 1 percentage point year on year to a total of 5% for battery EVs by April 2028. By contrast the rate for petrol and diesel cars will increase by 1 percentage point in 2025-26 and then be maintained, with the most polluting cars subject to 37% rates by 2028.

Used car market

Around 80% of car sales are in the used market and the health of this market is critical in the UK’s transition to zero emission vehicles. The Government’s 2030 phase out date for new petrol and diesel cars and vans does not apply to used vehicles – these may continue to be bought and sold on the second-hand market. The Government’s aim is that by 2050 almost all cars and vans on UK roads should be zero emission.
Due to the maturity of the new electric car market, the price of used EVs continues to fall. This provides far more choice for motorists, with some used car prices now similar in price to their petrol and diesel equivalents. In the first quarter of 2023, compared with the same period in 2022, used battery EV transactions have risen 57%. This growth is expected to continue with over 267,000 EVs sold in 2022, likely to come into the used car market over the next three to four years [SMMT data].
The Government is working with industry to explore options for improving the availability and standardisation of information for consumers on used EVs at the point of sale. This may include data on the remaining battery health or range of an EV. Dealerships and technicians dealing with used EVs will also continue to build their experience and expertise as the market grows.

Car clubs

The Government recognises that car clubs can provide cost-effective access to EVs. Since 2021, the Government has introduced policy changes to accelerate growth of car clubs, including: consulting on creating an additional ZEV mandate credit for car clubs, allowing on-street residential chargepoint scheme (ORCS) funding to be used for car clubs chargepoints, and publishing guidance for Local Authorities to implement car clubs in the Local Authority Decarbonisation Toolkit

EV Running Costs

For many motorists, EVs are already cheaper to own than the equivalent petrol vehicle on a total cost of ownership basis.
EV drivers benefit from significant savings on the cost of fuel. Most drivers charge at home overnight where they can access cheaper, more flexible tariffs – a trend the Government expects will continue.
Charging a medium-sized electric car at home at rates equivalent to the electricity price cap from 1 July 2023 equates to around half of the cost of filling up an equivalent petrol vehicle. Some suppliers continue to offer tariffs enabling drivers to run their EV at around 3p per mile.
The Government continues to support and encourage innovations that ensure those that don’t have their own home charger can benefit from cheaper domestic electricity tariffs, such as cable gullies and peer-to-peer charging schemes allowing owners to rent out their home chargepoints.
EVs also generally cost less to maintain due to fewer moving parts than their petrol or diesel equivalents.

Insurance Costs

The Government is working closely with the insurance sector to ensure the transition to zero emission vehicles is sustainable and cost effective. The Government expects the insurance sector will continue to evolve in line with the growing EV market and as data becomes more available to inform insurance premiums.

Overall EV Infrastructure deployment

The deployment of a reliable, accessible and affordable public charging network is crucial to the successful deployment of zero emission vehicles. In March 2022 the Government published the EV Infrastructure Strategy, setting out its plan to deliver this network.
The number of publicly available chargepoints is rapidly increasing. To date Government and industry have supported the installation of over 45,500 publicly available charging devices, an increase of 38% since last year. This includes over 8,600 rapid devices, which have increased by 42% since last year.
The Government expects around 300,000 chargepoints to be needed by 2030, at a minimum. The National Infrastructure Commission has stated that it expects this figure to be realised if chargepoint deployment grows at around 30% per year, as it has in recent years.
ChargeUK members have committed to investing more than £6 billion in developing and operating charging infrastructure before 2030. [ChargeUK is the industry body for EV charge point operators]

International comparisons

Norway has committed to phasing out all new sales of non-zero emission vehicles by 2025. At the end of 2022, the UK had more public EV chargepoints than Norway, with 37,055 compared with Norway’s 23,866.
At the end of 2021, the UK had a better ratio of EVs to public chargepoints – with the UK having 13 EVs per chargepoint, compared with 23 EVs per chargepoint in Norway.

Public charging

Rapid Charging

Charge anxiety is commonly identified as a concern for prospective EV drivers. A visible and functional long distance charging network is vital for mass zero emission vehicle adoption. However, the cost of upgrading the electricity grid to support rapid and ultra-rapid chargepoints at motorway service areas (MSAs) can often be a barrier to installation.
There are currently more than 450 open-access (can be used with any EV) rapid (50kW) and ultra-rapid (150kW+) chargepoints at MSAs across England. There are over 220 ultra-rapid chargepoints which can deliver around 120-145 miles of range in just 15 minutes for a typical EV, compared to around 45 minutes for a rapid (50kW) chargepoint.

The Government is already supporting MSA operators and the private sector to deliver ultra-rapid, open access chargepoints at every MSA.
Through the £11 million National Highways Energy Storage Systems (NHESS) project, National Highways will procure and install battery energy storage at MSA sites. This will support the installation of ultra-rapid EV chargers.

The Green Recovery Scheme (GRS) is a £300 million investment programme, administered by Ofgem, aimed at reinforcing the electricity network, with a focus on enabling low-carbon technologies.

The Government’s Rapid Charging Fund (RCF) will build on these early intervention projects, and fund a portion of the cost of upgrading the electricity grid at strategic locations, where it is currently not commercially viable to do so. This will ensure that the private sector can continue to expand the charging network and future-proof electricity network capacity 10 years ahead to a minimum of 2035, with a stretch target of 2050.
National Highways is the proposed delivery body for the Rapid Charging Fund and the Government is working collaboratively with them on the fund design. A pilot is expected in due course.

Local and On-Street Charging

Local authorities have a crucial role in developing local EV charging strategies and facilitating local provision – especially for residents without access to off-street charging.

The Local EV Infrastructure (LEVI) Fund will provide local authorities in England with significant funding to work with industry and transform the availability of charging for drivers without off-street parking. This will ensure the transition to EVs takes place in every part of the country, by supporting tens of thousands of local chargepoints.
The pilot for the LEVI Fund launched in August 2022 and was expanded further in February 2023, to support the development of the full fund. The pilot provided over £61 million in public and private investment to 25 different local authorities across England to deliver almost 3,400 chargepoints and 1,000 gullies to drivers without off-street parking.
In March 2023 it was announced that a further £381 million (£343 million capital and £37.8 million resource) would be made available to all Tier 1 local authorities over the next two financial years. This will deliver a step change in the deployment of local, low power charging infrastructure across England and accelerate the commercialisation of the local charging infrastructure sector to support a market-led roll-out.
In addition, the Government’s On-Street Residential Chargepoint Scheme (ORCS) is available to local authorities in the UK, including town and parish councils to part-fund the capital costs of installing public chargepoints for residents without access to off-street parking. Chargepoints up to and including 22 kW are eligible for funding. The scheme has already provided funding which will see more than 14,000 public chargepoints installed.
As the Government transitions to the LEVI Fund, it has adapted ORCS to focus on smaller chargepoint projects which plug gaps in charging coverage and maintain chargepoint installation momentum.

LEVI Capability Funding

Local authorities are best placed to understand what charging infrastructure is needed and have a key role in planning and enabling the delivery of chargepoints to meet the needs of their residents, with particular focus on supporting those who do not have access to off-street parking.
However, this is a new area for local authorities and many lack the resources, capacity and capability to focus on this agenda. The £37.8 million LEVI capability funding will therefore be distributed to local authorities in England to help them develop their capacity for the planning and delivery of local EV charging infrastructure.
Capability funding can be spent on the salaries and overheads of new officers, as well as those of current staff moved over to work in EV infrastructure and procurement.
DfT has also launched a local government knowledge hub on gov.uk to make information and guidance on local EV chargepoint planning and delivery easy to access. The LA Hub carries an extensive list of guidance from government and external bodies related to EV infrastructure rollout. The website also acts as a central portal to highlight new and upcoming policies and support from central government.

Consumer Experience

EV drivers should have a seamless and uncomplicated experience when using the public charging network. It is essential that as the charging network expands and evolves, consumer needs are kept central.
To increase confidence in the charging network and reduce charging anxiety the Government has laid regulations to improve the consumer experience across the public charging network, and has published accompanying guidance. The regulations will ensure that pricing information and payment methods are simplified, chargepoints are reliable, and public chargepoint data is freely available. The regulations mandate open data to ensure consumers can locate the right chargepoints for their needs; 99 per cent reliability across each rapid charging network and a 24/7-hour helpline across the entire public charging network for if something goes wrong when charging; contactless and payment roaming; and a pricing metric to ensure pricing transparency.
Contactless payment will apply to all newly installed chargepoints capable of charging 8kW and above and to all existing chargepoints at and over 50kW one year after the legislation comes into effect.
The Alternative Fuels Infrastructure Regulations 2017 (AFIR), which came effect in the UK in October 2017, set out harmonised technical standards for vehicle recharging in the UK.
All publicly accessible chargepoints that can be used for standard or fast AC charging (3.7kW-22kW) and that have either been deployed or renewed since 17 November 2017 must at a minimum offer a ‘Type 2’ recharging connector.
For rapid charging devices, publicly accessible chargepoints must at a minimum offer a ‘Type 2’ recharging connector if using AC, or the ‘Combo 2’ combined charging system if using DC.
These are minimum requirements, therefore the chargepoint may also offer recharging connectors using other technical standards, providing that they also offer recharging connectors utilising the standards above.

Chargepoint Accessibility

 All EV drivers should be able to easily find public chargepoints they can use, and accessibility should be embedded in public chargepoint design from the outset.

 PAS (Publicly Available Standard) 1899 was published by the British Standards Institution (BSI) on 11 October 2022, co-sponsored by Government and Motability. PAS 1899 provides, for the first time, specifications on designing and installing accessible public EV chargepoints, meeting the industry need for standardised guidance on what accessible public chargepoint design consists of and how it can be deployed.

 PAS 1899 covers specifications including: the location, placement and spacing of chargepoints, along with aspects such as kerb height, the height of the chargepoint, and the force required to lift the charger cable and insert the charge connector. The standard also considers chargepoints in the context of their wider built environment, to ensure pedestrians’ and other road users’ needs are reflected.

 Compliance with PAS 1899 is voluntary, however the Government is actively encouraging relevant parties to adopt its specifications, building on improvements already being made in the sector. The Government is encouraging local authorities to incorporate accessibility into their procurement models and OZEV grant scheme applications.

VAT on public charging

 VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services, including public EV charging. Whilst there are exceptions to the standard rate, these have always been limited by both legal and fiscal considerations.

 For instance, in recognition of the fact that families should not have to bear all the VAT costs they incur to meet their needs, the supply of energy for domestic use, including electricity, attracts the reduced rate of VAT (5 per cent). Whilst this relief was not designed or introduced for charging EVs at home, this relief applies for all uses of domestic energy.

 VAT is the UK’s third largest tax and is forecast to raise £161 billion in 2023/24, helping to fund key spending priorities. Expanding the VAT relief already available would impose additional pressure on the public finances to which VAT makes a significant contribution. Yet, there is no guarantee that this saving would be passed onto consumers.

 Nevertheless, the Government keeps all taxes under review.

Private Charging

Most EV drivers charge at home overnight. In recognition of this, the Government introduced world-leading legislation in June 2022, requiring new homes and those undergoing major renovation with associated parking in England to have a chargepoint installed.
It is estimated that these measures could lead to the installation of up to 145,000 chargepoints across England every year, making it even easier for people to make the switch to EVs.
In addition, the Government introduced legislation in England requiring new non-residential buildings and those undergoing major renovation, such as shops and workplaces, to have charging infrastructure installed at the point of construction. This will ensure drivers without off-street parking at home can charge conveniently as they go about their lives at new offices and shops.
Gullies or trenching solutions can be used to channel EV charging wires under the pavement, preventing tripping hazards and allow those who live in terraced housing to charge their vehicle on-street. The Department is aware of numerous trials and installations of these solutions, across a range of local authority areas.

EV Infrastructure Grants

The Government recognises the difficulties that people renting or leasing properties can face when looking to install chargepoints. That is why the EV Chargepoint Grant scheme is focused toward these individuals. The EV Chargepoint Grant scheme provides support for those in rented accommodation, flats and multi occupancy buildings and landlords.
Grants of up to £350 per chargepoint are available for eligible applicants to help with the costs of purchase and installation. Individuals who own a flat or rent any residential property, including shared ownership, can apply for support through this scheme. Grants are also available for landlords including social housing providers and private landlords, as well as commercial landlords.
EV Infrastructure Grants are also available to help with the cost of wider building and installation work that’s needed to install multiple chargepoints in residential car parks, particularly apartment blocks, with grants of up to £30,000 available to help towards the cost of installing EV chargepoints in such properties. This will make it easier for those who own apartment blocks to apply for funding and to help them with the additional costs of installing chargepoints in carparks. The long-term aim is to stimulate the market and make it easier for all people in such properties to have chargepoints.

Workplace Charging Scheme

Through the Workplace Charging Scheme (WCS), businesses, charities and the wider public sector can get grants of up to £350 per socket for installing up to 40 charging sockets for their employees and fleets. Over 42,000 installations have been funded using the scheme [1 April 2023].
The Government’s schemes also support the provision of chargepoints for small to medium sized businesses looking to support the transition to EVs for their staff and fleets. Through the Workplace Charging Scheme small and medium sized enterprises and public sector organisations can apply for chargepoint grants, and infrastructure grants of up to £15,000 to provision staff and fleet car parks.
Charities and small accommodation businesses including B&Bs, camp and caravan sites and small hotels are also able to apply for support through the Workplace Charging Schemes, and can make their chargepoints available for customer and visitor use as well as staff. This will help to accelerate EV uptake in rural areas and support the UK tourist and hospitality industry.

Planning Barriers to Chargepoint Installation

 In some cases, securing the relevant permissions, consents, and licences to install a chargepoint can create additional costs and delay. The Government wants to make these processes as smooth as possible.

 The Government is exploring options for a unified consent process for installing EV chargepoints, including consideration of a streamlined process for obtaining the planning permission consent and the highways consent for traffic management works.

Grid connections

Meeting Future Demand

EV charging will increase demand on the UK’s electricity system, requiring more generation capacity to meet both overall and peak demand, and the network infrastructure to deliver power to where it is needed. The Government is confident that the grid will be able to cope with increased demand from EVs.
By 2030, electric cars and vans could increase total energy demand by 30 Terawatt hours, and by between 65 to 100 Terawatt hours in 2050. This compares to system-wide demand levels of 300-400 Terawatt hours in 2030 and 600-900 in 2050.

Ensuring the electricity networks are able to cope with current and future demand from EVs is the responsibility of electricity network operators, and they are incentivised to do so through the regulatory framework set out by Ofgem, the independent regulator.
Ofgem use price controls, known as RIIO, to determine the revenues network operators recover, investment they make and performance standards they must deliver. As part of the RIIO process, network operators forecast likely take-up of EVs, in order to shape investment plans for reinforcing the network.

Ofgem has already taken steps to allow network companies to invest in their networks ahead of new connections. For example, in the current electricity distribution network price control (“RIIO-ED2”) which runs from April 2023 to 2028, DNOs are incentivised to take a proactive investment approach. Through increased monitoring and modelling of the low-voltage networks, DNOs will be able to plan proactive reinforcements to their networks ahead of need.
Additionally, through their Future Systems and Network Regulation and Future of Local Energy Governance consultations, Ofgem looks to ensure that the network is strategically upgraded in anticipation of significant new demand, such as EV chargepoint stations, that require new or upgraded connections. They also propose a Regional System Planner that would be responsible for cross-vector strategic energy planning with input from key stakeholders such as local government, to effectively meet this new demand.

In the future, changes on the network will be rapid and require agile regulation. Ofgem is working to enable this via various mechanisms, including a Net Zero Re-Opener, whereby network operators can seek additional funding for Net Zero related projects, such as catering for greater uptake of EVs.

The Government is working with the energy industry to plan for EV uptake and ensure the energy system can meet future demand in an efficient and sustainable way.

Accelerating Connections

The Government is aware of lengthy connection timelines currently being offered in parts of the country, and the impact this can have on projects. Network companies at both transmission and distribution level are taking action to release network capacity and reduce connection timelines. The Department for Energy Security & Net Zero and Ofgem are participating in these workstreams to ensure actions are identified and delivered in an effective and timely manner, resulting in earlier connection dates.
The Government will continue to review evidence on connection costs and timings and work closely with Ofgem to ensure that these do not significantly delay EV uptake, particularly at inflexible locations with high demand such as depots.
The Energy Networks Association (ENA) has established a Strategic Connections Group (SCG). Comprising transmission and distribution network companies, Government and Ofgem, it aims to improve the connection process, particularly at the transmission/distribution interface, and to agree best practice approaches to ensure consistency across the country. It published its action plan in April covering better queue management, improved processes at the transmission/distribution interface and revised modelling of the impact of battery connections on the networks. Implementation is underway and the ENA is considering further actions to improve the connection process.
The Government committed in the Powering Up Britain: Energy Security Plan to publish a connections action plan (jointly with Ofgem), building on the industry-led tactical work, to provide direction on further and wider actions to accelerate connections.
The Government is working closely with National Grid Electricity System Operator (NGESO) to reform the connections process and accelerate EV connections. NGESO published its 5-point plan earlier this year which is expected to see connection timescale improvements of between 2-10 years for the majority of existing projects connecting to the transmission network. This will release capacity on the distribution network to support the increased demand expected from the rollout of EV charging infrastructure.

EV Supply Chain

The Government is investing to expand the UK’s supply chain for zero emission vehicles. The Government is continuing to engage with industry stakeholders, including via the Automotive Council, to develop evidence-based policies and targeted funding programmes which support growth in industry and the supply chain. Where materials are needed from overseas, the Government is actively working to secure ambitious free trade deals which could also provide an opportunity to diversify sources of supply and the new UK Global Tariff ensures the cost of critical inputs are kept at a minimum.

Automotive Transformation Fund

Through the Automotive Transformation Fund (ATF), Government continues to unlock investment in strategically important technologies, such as gigafactories, motors and drives, power electronics, and fuel cell systems. This is key for anchoring the mass manufacture of zero emission vehicles in the UK, safeguarding jobs, and driving emissions to net zero by 2050.

 ATF funding has already helped secure major investments in the UK, including:

Tata Group’s £4 billion+ investment to build a gigafactory in the UK.
The £1 billion EV hub in Sunderland in partnership between Nissan and Envision AESC.
Ford’s investment of £380 million in production of electric drive units at Halewood.
Johnson Matthey’s investment of over £60 million to develop hydrogen technologies in Hertfordshire.

 In the coming months, after engagement with industry, the Government will build on the ATF and to take decisive action to ensure future investment in zero emission vehicle manufacturing.

Research and Development

 Government continues to invest record sums in R&D. Delivered alongside the Advanced Propulsion Centre (APC), long-term R&D programmes provide support to accelerate the development and commercialisation of strategically important vehicle technologies, strengthening the UK’s competitive edge internationally.

 Since its foundation in 2013, the APC R&D competitions have supported 199 projects involving 450 partners. These projects are estimated to have supported over 55,000 high skilled jobs and are projected to save over 350 million tonnes of CO2, the equivalent of removing the lifetime emissions of 14.1 million cars.

 In October 2022 the Government also announced a record £211 million of funding for the Faraday Battery Challenge, to support battery research and innovation in battery technology, bringing the overall budget of the Challenge to £541 million since 2017.

Battery manufacturing in the UK

Battery costs have fallen by around 90% since 2010 and are expected to continue decreasing.
Tata Group recently announced plans to establish a gigafactory in the UK. This £4 billion+ investment will support the UK motor industry and the transition to zero emission vehicles. The factory will create up to 4,000 highly skilled jobs, as well as thousands of further jobs in the wider supply chain.
At 40GWh this will be one of the largest battery plants in Europe and is set to provide almost half of the battery production it is estimated the UK will need by 2030, turbocharging UK’s switch to zero emissions vehicles.

End of life battery management

The Government has committed over £500 million to the Faraday Battery Challenge (FBC) to support the research, development, and scale-up of world-leading battery technology in the UK. The Challenge has supported over 140 organisations working across the UK, attracting over £400 million in further private sector investment.
To better use global resources and reduce dependency on raw mineral supply, one of the eight technical challenges set by the Faraday Battery Challenge is to be able to recycle 95% of an EV battery pack by 2035. The Faraday Battery Challenge is funding research to develop new battery chemistries with reduced percentages of rare materials. They are also funding research to advance battery recycling and reuse to promote a more circular economy.
The Government is providing grant support through the Advanced Propulsion Centre to a ground-breaking project (RECOVAS) to create a new circular end-of-life supply chain for the EV industry. RECOVAS will develop the UK’s first commercial scale recycling facility for automotive battery packs. RECOVAS is led by EMR Metals Recycling, a world leading metal recycler, working with vehicle manufacturers, research centres and government bodies.

Recycling Regulation

The 2009 Waste Batteries Regulations also obligates battery producers to take back EV batteries free-of-charge, and ensure they are treated at permitted facilities which meet the required recycling efficiency standards.
The Department for Environment, Food and Rural Affairs are currently reviewing the legislation that applies to waste battery recycling, as part of the Government’s 2018 Resources and Waste Strategy. This will consider the changes needed to provide an appropriate framework for increasing numbers of EV batteries.

Ethical Considerations

The Government is aware of the social, environmental and supply concerns surrounding the mining of raw materials for BEVs and is working to address these. Many of these same materials are also required for the production of internal combustion engine vehicles. Some raw minerals, such as cobalt, are geographically limited with political and ethical sourcing issues. A Government priority is to localise more of the supply chain to the UK. Many EV manufacturers have committed to the responsible sourcing or reduction of cobalt in their supply chains.
The Government, through the Foreign, Commonwealth & Development Office, is working to strengthen transparency, improving governance, and find solutions to the complex challenges of extracting cobalt from artisanal mines. This includes working with civil society and mining companies, and through programmes that develop innovative approaches to ending child labour and human rights abuses.  
More broadly, the Government expects UK companies to adhere fully with UN Guiding Principles on Business and Human Rights and the FCDO works to support and promote responsible practice by UK companies internationally. As an active member of the Organisation for Economic Cooperation and Development (OECD), the Government encourages states and those working in the industry to implement the OECD’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

Supply of Skilled Workers

The Government is committed to ensuring the UK has the right skills to remain at the forefront of the design, manufacture and maintenance of zero emission vehicles.
The Government is working with industry through the Automotive Council’s Skills Working Group to ensure the UK automotive industry can support and develop the skills needed for sustainable success.
The Government is also working with the Institute of the Motor Industry (IMI) and has endorsed the IMI’s TechSafe scheme to help ensure the UK’s workforce of mechanics are well trained and have the skills they need to repair EVs safely. The Government’s endorsement will ensure that the IMI TechSafe Standards are recognised and trusted by industry and customers. This scheme includes a register for consumers to check the EV competencies of technicians at their garage, supporting consumer confidence in this growing market.
The number of EV qualified technicians has risen rapidly, with over 42,000 individuals already qualified to work on an EV according to the Institute of the Motor Industry.