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Motor Vehicle Battery Manufacturing in the UK - Market Research Report (2015-2030)

Felix Gilroy Felix Gilroy London, United Kingdom Last Updated: December 2025 SIC SP0.296

Revenue

£571.1m

2025-26

£571.1m

Past 5-Year Growth

Profit

£XX.Xm

Employees

117

Businesses

62

Wages

£XX.Xm

Motor Vehicle Battery Manufacturing in the UK industry analysis

Over the five years through 2025-26, the UK Motor Vehicle Battery Manufacturing industry's revenue is expected to rise at a modest compound annual growth rate of 0.6%. Revenue is projected to dip slightly by 0.6% in 2025-26, reaching £571.1 million. While modest, this performance reflects robust underlying demand for batteries, fuelled largely by the regulatory push behind electric vehicle (EV) adoption rather than pure consumer preference.

Trends and Insights

  • Regulatory mandates are now the primary driver of UK battery demand, surpassing consumer preference. Tough ZEV legislation has forced rapid growth in EV output, directly fuelling battery consumption and prompting significant expansion in domestic manufacturing capacity.
  • Sustainability concerns and EV advances are rapidly shrinking the UK petrol vehicle market. Declining new petrol registrations are cutting demand for lead-acid batteries, forcing manufacturers to adapt or seek growth in less-regulated international markets.
  • The South East and South West are becoming the UK’s battery manufacturing powerhouses. Strong industry ties, leading universities and major gigafactory investments are attracting manufacturers and driving rapid growth in these strategically connected regions.
  • New manufacturers face hurdles like high startup costs. Differentiating products in a crowded market requires substantial funding for research, making entry into the battery manufacturing industry highly challenging.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 0.6 % over the past five years, to reach an estimated £571.1m in 2025.

Trends and Insights

Electrification mandate accelerates battery demand

  • Regulatory mandates have surpassed consumer preference as the primary driver of the electric vehicle battery industry’s expansion. The UK’s Zero Emission Vehicle (ZEV) legislation requires carmakers to escalate production of zero-emission vehicles, forcing manufacturers to rapidly adjust output or face steep penalties. The non-negotiable structure of this legislation has consistently ensured rising electric vehicle demand over the five years through 2025-26.
  • Additional trends and insights available with purchase
Motor Vehicle Battery Manufacturing in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

UK policy framework and infrastructure investment to accelerate electric vehicle uptake

  • The UK government’s Zero Emission Vehicle mandate establishes a clear and binding trajectory for electric vehicle adoption through the end of the decade, with rising annual targets for both cars and vans culminating in 80% of new car sales being electric by 2030. The legally enforced, stepwise escalation ensures manufacturers must continuously scale up electric vehicle (EV) output to avoid punitive fines, embedding structural growth for lithium-ion battery demand throughout 2030 and beyond.

Biggest companies in the Motor Vehicle Battery Manufacturing in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
AESC UK
229.7
GS Yuasa
41.6
Exide Technologies (Transportation) Ltd
23.7

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Motor Vehicle Battery Manufacturing in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Lead-Acid, Lithium-Ion and Nickel-Based. Lead-Acid is the largest segment of the Motor Vehicle Battery Manufacturing in the UK.

Trends and Insights

Local lithium-ion cell demand intensifies with electric vehicle expansion

  • Lithium-ion batteries, valued for their high energy density and suitability for electric and hybrid vehicles, are seeing rising demand as major UK automakers like Nissan and JLR ramp up EV production ahead of the 2035 zero-emission vehicle mandate.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Motor vehicle battery manufacture in the UK involves the production of batteries specifically designed for cars, trucks, and other motor vehicles. This industry focuses on creating high-performance, durable and efficient batteries, including traditional lead-acid, modern lithium-ion, nickel and calcium types, supporting the automotive sector's shift towards electric vehicles.

What's included in this industry?

Products and services covered in the Motor Vehicle Battery Manufacturing industry in the United Kingdom include Lithium-ion batteries, Nickel-based batteries, Lead-acid batteries and Calcium-calcium batteries.

Companies

Companies covered in the Motor Vehicle Battery Manufacturing industry in the United Kingdom include AESC UK, GS Yuasa and Exide Technologies (Transportation) Ltd.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Motor Vehicle Battery Manufacturing industry in the United Kingdom include valve regulated lead acid (vrla), internal combustion engines (ice), gigafactory and electric vehicle (ev).

Industry Code

SIC 2007

SIC 27.11 - Motor Vehicle Battery Manufacturing in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Regulatory mandates are now the primary driver of UK battery demand, surpassing consumer preference. Tough ZEV legislation has forced rapid growth in EV output, directly fuel...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Sustainability concerns and EV advances are rapidly shrinking the UK petrol vehicle market. Declining new petrol registrations are cutting demand for lead-acid batteries, for...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The South East and South West are becoming the UK’s battery manufacturing powerhouses. Strong industry ties, leading universities and major gigafactory investments are attrac...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

New manufacturers face hurdles like high startup costs. Differentiating products in a crowded market requires substantial funding for research, making entry into the battery ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

GS Yuasa’s major UK expansions in Swindon and Wales significantly boost storage and production capacity while enhancing operational efficiency. These investments position the...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of AESC UK's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of GS Yuasa's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Exide Technologies (Transportation) Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for AESC UK, and factors influencing its performance in the industry
  • Description and key data for GS Yuasa, and factors influencing its performance in the industry
  • Description and key data for Exide Technologies (Transportation) Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Government-backed programmes are driving investment and innovation across the UK battery sector. Initiatives, including the UK Battery Strategy 2023, the Battery Innovation P...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Rising demand for electric vehicles is boosting battery sales and supporting modest profit growth for UK manufacturers. However, since most batteries in UK EVs are imported, ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Motor Vehicle Battery Manufacturing industry in the United Kingdom in 2025?

The market size of the Motor Vehicle Battery Manufacturing industry in the United Kingdom is £571.1m in 2025.

How many businesses are there in the Motor Vehicle Battery Manufacturing industry in the United Kingdom in 2025?

There are 62 businesses in the Motor Vehicle Battery Manufacturing industry in the United Kingdom, which has grown at a CAGR of 8.1 % between 2020 and 2025.

How may import tariffs affect the Motor Vehicle Battery Manufacturing industry in the United Kingdom?

The Motor Vehicle Battery Manufacturing industry in the United Kingdom is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.

How may export tariffs affect the Motor Vehicle Battery Manufacturing industry in the United Kingdom?

The Motor Vehicle Battery Manufacturing industry in the United Kingdom is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.

Has the Motor Vehicle Battery Manufacturing industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Motor Vehicle Battery Manufacturing industry in the United Kingdom has been growing at a CAGR of 0.6 % between 2020 and 2025.

What is the forecast growth of the Motor Vehicle Battery Manufacturing industry in the United Kingdom over the next 5 years?

Over the next five years, the Motor Vehicle Battery Manufacturing industry in the United Kingdom is expected to grow.

What are the biggest companies in the Motor Vehicle Battery Manufacturing industry in the United Kingdom?

The biggest companies operating in the Motor Vehicle Battery Manufacturing industry in the United Kingdom are AESC UK, GS Yuasa and Exide Technologies (Transportation) Ltd

What does the Motor Vehicle Battery Manufacturing industry in the United Kingdom include?

Lithium-ion batteries and Nickel-based batteries are part of the Motor Vehicle Battery Manufacturing industry in the United Kingdom.

Which companies have the highest market share in the Motor Vehicle Battery Manufacturing industry in the United Kingdom?

The company holding the most market share in the Motor Vehicle Battery Manufacturing industry in the United Kingdom is AESC UK.

How competitive is the Motor Vehicle Battery Manufacturing industry in the United Kingdom?

The level of competition is low and increasing in the Motor Vehicle Battery Manufacturing industry in the United Kingdom.

Methodology

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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