U.K. Battery Market Size, Share & Analysis, By Type (Lithium-ion Battery, Lead-acid Battery, Nickel–cadmium Battery, Nickel-metal Hydride Battery, and Others), By State (Primary and Secondary), By Application (Electric Mobility, Energy Storage, Consumer Electronics, and Others), and Regional Forecast, 2025-2032

The U.K. battery market size was worth USD 6.45 billion in 2024 and is estimated to grow to USD 7.15 billion in 2025. The market is projected to be worth USD 15.24 billion in 2032 and grow at a CAGR of 11.42% during the forecast period.

The demand for batteries in the U.K. is sharply increasing for both grid storage and electric transport. As of June 2024, the U.K. has approximately 4.6 GW of grid-scale battery storage, equating to a total energy capacity of 5.9 GWh, marking a significant rise from the 2.4 GW/2.6 GWh recorded at the end of 2022. 

In addition, the government’s Clean Power 2030 initiative aims for a battery capacity of up to 27 GW by 2030, representing a six-fold increase from current capacities. Recently, over 100 planning submissions for battery-energy storage systems (BESS), amounting to 8.4 GW, were lodged in Q2 2025, which is double the amount from the previous year. Also, the U.K. energy system is increasingly integrating battery storage to enhance grid flexibility, support renewable generation, and achieve its net-zero carbon targets.

U.K. Battery Market Trends

Increased Demand for Grid Stability & Growing Decarbonization Efforts to Drive Market Growth 

The U.K. government is swiftly increasing the U.K.'s battery storage capabilities to maintain grid stability and facilitate the transition to a low-carbon economy. By late 2024, the U.K. is expected to have about 7.5 GW of energy storage, 4.3 GW of which will come from advanced grid-scale lithium-ion batteries, with an additional 2.8 GW from pumped hydro and 0.4 GW from batteries installed in homes and buildings. 

There is a substantial development pipeline, with over 60 GW of storage capacity currently in the planning phase, including 59 GW of battery storage and 5.5 GW of pumped hydro. Further, anticipated to add around 18 GW of grid-scale batteries by 2027-2028 through capacity market agreements. The government’s Clean Power 2030 initiative aims to expand the battery storage market from 4.5 GW in late 2024 to between 23 and 27 GW by 2030 to facilitate a cleaner energy grid.

 Key takeaways

• In the by type segmentation, lithium-ion battery accounted for around 49.10% of the U.K. Battery Market in 2024.
• In the by state segmentation, secondary is projected to grow at a CAGR of 11.83% in the forecast period.
• In the by application segmentation, electric mobility accounted for around 54.48% of the U.K. Battery Market in 2024.

U.K. Battery Market Growth Factors

Policy & Infrastructure Initiatives by Government to Boost Market Growth

The battery market in the U.K. is propelled by a wide range of government-led policies and infrastructure initiatives. The U.K. Battery Strategy, an extensive plan supported by over £2 billion (USD 2.63 billion) in new capital and R&D investments through 2030, aimed at the design, manufacturing, recycling, and securing critical mineral supply chains for batteries. This strategy is in alignment with the Advanced Manufacturing Plan, which commits substantial funding to the automotive and battery sectors, as well as initiatives such as simplified grid connections, tax incentives, and improved apprenticeship programs.

• For instance, the DRIVE35 initiative, the Faraday Battery Challenge, and the U.K. Battery Industrialization Centre (U.K. BIC) provides strong backing for moving battery technologies from research to production. Additionally, the government is enhancing strategic global partnerships, especially through the U.K.–Australia Free Trade Agreement, which facilitates access to essential minerals such as lithium and nickel.

U.K. Battery Market Restraints

Grid Connection Bottleneck & Connection Delays to Limit Market Growth

Despite increasing demand, the U.K. battery sector faces several structural obstacles. A significant issue is the grid connection backlog. Additionally, there are prolonged delays in planning and connection. Developers often encounter waits of several years for grid access and approvals, with some projects anticipating waits of up to ten years. Local planning authorities frequently lack the necessary resources and specialized technical knowledge to expedite the review of complex BESS proposals. Regulatory uncertainty also hampers the advancement of battery energy storage systems. At present, energy storage does not have a precise legal definition, leading to its inconsistent classification as generation and exposure to overlapping or inappropriate regulations. This disjointed framework also leads to double charges, as storage facilities face fees for both electricity consumption and supply, negatively impacting project economics.

• For instance, the number of battery storage projects waiting for connection far surpasses the system's capacity reports indicate that 61 GW is queued for 2030, which is more than double the government's 27 GW target, and 129 GW is queued for 2035, four times the projected needs, leading to considerable uncertainty regarding which projects will move forward.

U.K. Battery Market Segmentation Analysis

By Type

Based on type, the market is divided into lithium-ion battery, lead-acid battery, nickel-cadmium battery, nickel-metal hydride battery, and others. 

Among these, the lithium-ion battery accounted for the highest U.K. battery market share, and it is anticipated to show the fastest growth during the forecast period. The need for lithium ion batteries in the U.K. is primarily influenced by the swift move toward zero-emission vehicles (ZEVs) and comprehensive backing for electric transportation infrastructure. In addition, the U.K. is advantaged by a well-established automotive sector with a focus on exports. In 2023, this industry supported 132,000 jobs and produced £21.4 billion (USD 28.14 billion) in gross value added, highlighting its ability to accommodate and boost the demand for batteries.

• For instance, in the first half of 2025, sales of battery electric and plug-in hybrid vehicles made up almost 32% of total new car sales, indicating an increasing transition by consumers toward electrified transportation.

By State

Based on state, the market is bifurcated into primary and secondary. 

Among these, the secondary battery accounted for the highest market share, and it is anticipated to grow at a faster rate during the forecast period. The U.K. is witnessing a significant rise in the demand for secondary batteries, mainly due to the swift growth of renewable energy capacity and the essential requirement for grid flexibility. Developers are taking advantage of decreasing battery prices and evolving market conditions, with the average annual revenues for Battery Energy Storage Systems (BESS) soaring to £92,000 (USD 121,000) per MW in early 2025, attributed to grid-stabilization services. Investment inflows are also boosting demand. The National Wealth Fund of the U.K. has dedicated £500 million (USD 658 million) to Eelpower Energy, aiming to build several 50 MW/100 MWh battery projects throughout Scotland and England. This initiative falls under a larger strategy to achieve 1 GW of storage capacity by 2030, aiding in addressing private funding shortages and expanding the market.

• For instance, in the second quarter of 2025, a historic 16.1 GW of additional renewable energy capacity, a remarkable 195% increase compared to the previous year, was authorized, covering 323 projects and indicating a stronger push toward clean energy development. This increase in renewable energy heightens the significance of battery storage for managing variable generation.

By Application

Based on application, the market is segmented into electric mobility, energy storage, consumer electronics, and others. 

Among these, electric mobility accounted for the highest share, and it is anticipated to show the fastest U.K. battery market growth. The demand for electric mobility in the U.K. is being driven by three main factors, including mandatory emission targets, growing infrastructure, and the uptake of corporate fleets. The government’s Zero Emission Vehicle (ZEV) mandate mandates that 22% of annual vehicle sales must be zero-emission by 2024, increasing to 80% by 2030, and reaching 100% by 2035. This regulatory initiative greatly amplifies the demand for EVs. 

For instance, the charging infrastructure is rapidly developing as of April 2024. The U.K. had around 60,000 public EV charging points, a 50% year-on-year increase, along with 13,051 rapid chargers (50 kW+) to support longer journeys. Additionally, by early 2025, more than 1 million home charge points had been installed, making convenient overnight charging accessible for numerous households.

List of Key Companies in the U.K. Battery Market

LG Energy Solution, Toshiba Corporation, and GS Yuasa Corporation are the prominent players in the market. Toshiba Corporation provides SCiB™ lithium-titanate batteries known for fast charging and high safety, used in U.K. grid storage pilots such as the Willenhall substation project. GS Yuasa Corporation operates a major battery plant in Wales (80M+ units produced) and a new HQ in Swindon, supplying lead-acid, lithium, and hybrid battery systems across the U.K. industries. G-Energy Solutions, while the original G-Energy entity is dissolved, G-Nergy Renewables remains active as an installer of solar-plus-battery and EV charging systems in the U.K.

The other companies with a considerable presence in the market include Samsung SDI, SK Innovation, Exide, and other small & medium-sized market players. These companies are making strategic moves, such as expanding their battery manufacturing capacities, collaborating with automakers to boost annual production capacity, producing energy storage system battery packs, and others. Also, the Northern Ireland battery market is expanding alongside renewable integration, with storage projects supporting grid stability and enabling higher penetration of wind energy in the region’s electricity mix.

LIST OF KEY COMPANIES PROFILED:

• CATL (China)
• LG Energy Solution (South Korea)
• Panasonic (Japan)
• BYD (China)
• Samsung SDI (South Korea)
• SK Innovation (South Korea)
• GS Yuasa Corporation (Japan)
• EVE Energy Co. LTD (China)
• Toshiba Corporation (Japan)
• Exide Industries Ltd (India)

KEY INDUSTRY DEVELOPMENTS:

• September 2025: Pulse Clean Energy, a specialist in energy storage and grid stability based in the U.K. and supported by the Investment Management Corporation of Ontario (IMCO), has successfully launched its seventh project to date, a 30-MW/67-MWh battery energy storage system (BESS) located in Atherton, west of Manchester. The installation was constructed on a former coal mining brownfield site, now referred to as Coal Pit. It has the capacity to supply energy to over 300,000 homes for one hour.
• August 2025: Natpower has announced intentions to invest EUR 1 billion (USD 1.11 billion) into a significant battery storage project at Sembcorp Utilities’ Wilton International Site close to Middlesbrough. According to Natpower's statement, this investment aims to create one of the largest battery energy storage systems (BESS) in the U.K., with both its capacity and duration projected to more than double that of existing U.K. facilities. The project is entirely privately funded and does not depend on government contracts.
• June 2025: TotalEnergies has announced that it will acquire a portfolio of 8 solar projects with a total capacity of 350 MW and 2 battery storage projects with a combined capacity of 85 MW from Low Carbon, a prominent company in the renewable energy sector. Since the solar projects are already at a near-completion stage, the objective is for them to be operational by 2028. They are expected to generate over 350 GWh of renewable electricity annually, which is comparable to the energy needs of approximately 100,000 households in the U.K.

REPORT COVERAGE

The U.K. battery market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the growing battery demand across various applications, battery penetration in major markets, and technological advancements. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for battery.

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Report Scope & Segmentation