The switch to electric vehicles could deliver a £24 billion boost to the economy over the next five years, according to government-backed research.
The Advanced Propulsion Centre said that there were huge opportunities for British companies as the country accelerates the move away from petrol and diesel cars, which are due to be banned from sale by 2035 at the latest.
The centre is a joint venture between the government and the automotive industry. Founded in 2013, it promotes research, development and production of low-carbon transport. It awards funding to projects to help to develop technologies for use in the shift to net zero-emissions vehicles.
In a report, it said that it had identified £12 billion of “market growth opportunities” in batteries. It said that there was a £10 billion growth opportunity in “power electronics”, or the way in which the electrics within a vehicle are controlled, and £2 billion in “electric machines”, that is the conversion of electrical motors into mechanical energy to propel a car.
The report comes as the government prepares to unveil plans to support a green economic recovery from the pandemic. Ian Constance, the APC’s chief executive, said: “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, up to tenfold in the next five years.”