According to the latest figures from the Society of Motor Manufacturers & Traders (SMMT) today, new car registrations in the UK rose for the first time this year, increasing by 11.3% year-on-year in July.
This comes in the wake of lockdown restrictions and closed car dealerships, causing months of stagnant sales, yet the demand for Battery Electric Vehicles (BEVs) continues to accelerate – with sales surging 259.4% against last year. BEVs are now becoming the vehicle of choice for an increasing number of drivers as government incentives, more attractive price points, and improved battery range work in their favour.
While this shows promise for the automotive industry, the EU continues to lag behind in electric lithium-ion battery production, representing less than 3% of global manufacturing capacity. With lithium-ion battery demand projected to increase ten-fold by 2029, the over-reliance on a few large-scale manufacturers overseas creates both risk and uncertainty for the sector.
Kevin Brundish, CEO and Founder of AMTE Power, comments: “Despite challenging market conditions, the drive towards electrification is continuing to gather pace and is projected to accelerate in the years ahead. A shift in consumer sentiment during COVID-19 is fuelling the shift from combustion vehicles, this transition, however, is met by limited battery supply within the UK manufacturing supply chain industry.”
