The move to electric vehicles (EVs) could benefit the UK economy by £24 billion in the next five years.
The Advanced Propulsion Centre (APC) says in a new report that supply chains will need to ramp up their capacity to ten times current levels to meet the predicted global demand.
With batteries, electric machines and power electronics, the total global EV market is forecast to reach £97 billion in 2025.
While the report found that the building blocks for electrification are already in place, it forecasts £12 billion market growth opportunities in batteries, £10 billion in power electronics and £2 billion in electric machines.
Ian Constance, CEO at the Advanced Propulsion Centre, said: “The electrification of vehicles is happening at pace, but if we are to deliver on our 2035 goals and take our place as world-leaders, the supply chain will need to expand more rapidly.”
APC, which plans to invest in lower emissions technologies such as magnet manufacturing and electric steel, aims to save 50 million tonnes of carbon dioxide emissions from the automotive industry in the next ten years, supporting the UK Government’s net zero targets.