Area of investment and support

Area of investment and support: Faraday Battery Challenge

This challenge, part of the UKRI Challenge Fund, is investing in research and innovation to develop more efficient, cost-effective and durable batteries, supporting the UK battery technology sector.

Budget:
The overall budget is £610 million.
Duration:
The programme is running from 2017 to 2025.
Partners involved:
Innovate UK (lead), UK Battery Industrialisation Centre, Faraday Institution, Engineering and Physical Sciences Research Council (EPSRC)

The scope and what we're doing

This challenge is investing up to £610 million to further develop a UK battery technology industry that is high tech, high value and high skill.

It aims to develop battery technologies that are:

  • cost-effective
  • high-performing
  • have longer range
  • faster charging
  • long-lasting
  • safe and sustainable

This investment aims to make the UK a science superpower for batteries by supporting the UK’s world-class battery facilities. It is also growing innovative businesses that are developing the battery supply chains.

The challenge comprises three core elements:

  • business-led innovation, delivered through the Faraday Innovation Programme
  • the Faraday Institution, supporting academic-focused research and capability development
  • the UK Battery Industrialisation Centre (UKBIC), providing manufacturing scale-up and skills development

Business-led innovation

Business-led innovation is being delivered by Innovate UK and focuses on support to help scale up high-tech businesses. It includes the following activities.

Collaborative research and development programme

The Faraday Battery Challenge Innovation programme is supporting UK businesses to push the boundaries of battery innovation and grow the UK battery supply chain.

£130 million of UKRI funding from Innovate UK has been invested for businesses to lead feasibility studies, and collaborative research and development projects across the battery value chain. This investment has been in collaboration with the UK’s world-leading academics and research technology organisations.

These projects have supported over 200 organisations across the UK, with 80% of the projects led by micro, small or medium-sized enterprises (SMEs).

Projects funded so far include projects focused on:

  • battery lifespan
  • battery capacity
  • degradation and prediction via digital tools
  • charging rates
  • process and manufacturing tools
  • the reuse, remanufacture and recycling of batteries

Skills

Approximately 270,000 jobs will be needed across the UK battery and electric vehicle (EV) industry by 2040. Ensuring we inspire emerging talent, signpost career changers, and welcome people returning to the job market into the exciting battery sector is vital.

To aid skills development across the UK, the Faraday Battery Challenge has commissioned projects to tackle known skills challenges and provided training through UKBIC. It is collaboratively aligning industry and skills providers across the UK through a skills framework and unlocking training demand in regions linked to industry need.

This work has been carried out through:

SME credits

Projects funded through this scheme support SME research and development for the scale-up of battery technologies within the UK.

Its aim is to move UK battery innovations from technological potential towards commercial capability and help develop and secure material and manufacturing supply chains for battery technologies in the UK.

Investor Partnerships Programme

Innovate UK launched the Investor Partnerships Programme to provide grant funding for highly innovative SMEs who require equity funding to develop their technology.

Innovate UK has a pool of 150 selected investor partners, such as venture capital funds, corporate investors, business angel groups and social impact investors, from across the UK, Europe and the US.

The programme focuses on specific themes that include net zero, health and wellbeing, critical circular materials and batteries. The Faraday Battery Challenge has invested £2.6 million in this programme.

Investor readiness

Sponsored by the Faraday Battery Challenge and led by Innovate UK Business Connect, this programme has empowered 35 UK-based SMEs in the battery supply chain from 2021 to 2024.

With 90% of participants achieving positive outcomes or raising capital, the 12-week transformative journey includes tailored workshops, one-on-one mentoring, and a live showcase event.

Supported by external experts and investors, participants develop an investor pitch, finish their proposition and have a comprehensive understanding of their intellectual property, finances and future plans. The programme culminates in a live showcase event where the cohort pitch to an audience of investors interested in the battery sector.

Faraday Institution

The Faraday Institution is the UK’s independent institute for:

  • electrochemical energy storage research
  • skills development
  • market analysis
  • early-stage commercialisation

It brings together research scientists and industry partners on projects with commercial potential that will:

  • reduce battery cost, weight and volume
  • improve performance and reliability
  • develop whole-life strategies including recycling and reuse, for both the automotive and wider relevant sectors

Headquartered at the Harwell Science and Innovation Campus, the Faraday Institution is a registered charity with an independent board of trustees. It represents an investment of over £190 million as part of the Faraday Battery Challenge.

Faraday Institution research

Because of the current level of commercialisation of different technologies and the UK’s need to deliver improvements in electric vehicles over a range of timescales, the Faraday Institution is pursuing a portfolio of projects. The research programme spans 10 major research projects.

Seven of the research projects aim to optimise current generation lithium-ion based batteries where there are still considerable gains to be made and where research breakthroughs could start to be realised in commercial batteries within three to four years. The projects include:

  • three projects building core knowledge, understanding, capability in battery degradation, modelling and safety
  • two projects focusing on processing in electrode manufacturing and recycling
  • two projects focusing on next-generation cathode materials

Three projects are higher risk, higher reward, and could facilitate the long-term commercialisation of next-generation battery technology. This sector still requires considerable research in the areas of materials discovery and optimisation in solid-state, sodium-ion and lithium-sulfur batteries.

This large-scale research programme is multidisciplinary, highly collaborative, and draws together the best of UK university research groups and industrial partners. Its research community consists of more than 500 researchers from 25 UK universities and over 140 industry partners.

The UK Battery Industrialisation Centre (UKBIC)

This £204 million national facility provides manufacturing scale-up and skills for the battery sector.

The purpose-built facility is where businesses develop their battery manufacturing processes at the scale they need to move to industrial production, and where those working in the industry can develop new skills by working on the production line, alongside UKBIC’s specialist teams.

Opened in July 2021, the Coventry-based facility can be accessed by organisations with existing or new battery technology, or companies looking at entering the industry. UKBIC doesn’t retain customer intellectual property.

New developments at UKBIC

UKBIC’s Flexible Pilot Line will bridge the gap between the facility’s existing Industrial Scale-up Line and smaller, kilogramme-scale demonstrators available elsewhere.

The new specialist line will provide developers of all shapes and sizes with a more cost-efficient route to market, helping them move from research and development to large-scale production in more manageable steps.

UKBIC’s specialist 800 square metre Clean and Dry Zone will provide a dedicated clean and dry room environment, which can be subdivided for different use cases. That means customers can develop individual processes or machinery under carefully controlled environmental conditions.

The facility also has a new Battery Development Laboratory, which will boost the facility’s capabilities in battery materials characterisation, cell analysis and forensic activities.

UKBIC’s new Cell Cyclers and environmental chambers are housed inside a 135 square metre air-conditioned unit inside the existing formation, ageing and testing area.

Skills and training

UKBIC also delivers specialist skills and training to the wider industry, both at home and abroad. It has given comprehensive training to several European and US battery developers and original equipment manufacturers, as well as research organisations, such as MIRA and the University of Oxford.

Companies can send their employees to work and learn first-hand from the organisation’s team of specialist battery manufacturing trainers. It also offers an ‘Introduction to Battery Manufacturing Process’ training course to non-specialists, which has been attended by industry luminaries Roger Atkins and Quentin Wilson.

Training courses include. among others:

  • introduction to electrode processes
  • introduction to cell assembly
  • introduction to formation
  • ageing and testing processes
  • substance awareness
  • clean and dry rooms in battery manufacturing
  • fundamentals of sustainable manufacturing processes

Why we're doing it

The world is undergoing a transition to a low-carbon future, but transport remains the largest source of carbon dioxide emissions in the UK, accounting for 29% of emissions.

Developing low-cost, reliable and long-range electric vehicles is the key to reducing these emissions. Batteries are playing a crucial role, not only in the automotive sector but in applications across aerospace, rail, marine, off-highway vehicles and static storage.

The UK and the EU have established clear end dates for the sale of petrol and diesel vehicles, which is driving the demand for battery-powered electric vehicles. This transition to an electrified future will require many types of batteries, with some yet to be imagined.

Therefore, the next generation of battery technology must be developed, along with exploration and de-risking of new production processes that ensure long-term UK success in battery manufacturing and car-making.

Rules of origin requirements in the UK-EU Trade and Cooperation Agreement also mean battery packs must substantially originate in the UK or EU to be able to export cars tariff-free into the EU. It is crucial for a prosperous future of the UK automotive industry that a strong local battery supply chain is well developed.

The battery supply chain will involve not only the required materials to make a battery, but also the equipment for production and skilled workforce to run the production lines and research new technologies. It is also crucial to ensure the security of critical minerals used to produce batteries, and to research and develop solutions for reuse and recycling.

These actions are necessary for the UK to have a sustainable and strong end-to-end battery supply chain.

The government released the UK Battery Strategy which sets out the vision for battery manufacture in the UK. The strategy states that: “The government’s 2030 vision is for the UK to have a globally competitive battery supply chain that supports economic prosperity and the net zero transition.”

It adds: “The UK will be a world leader in sustainable design, manufacture, and use of batteries, underpinned by a thriving battery innovation ecosystem.”

The UK Battery Strategy, as part of the Advance Manufacturing Plan, present the government commitments to the UK battery sector with a cross-sector view and supports the energy transition aiming the net zero commitments by 2050.

Opportunities, support and resources available

Funding opportunities

Search for relevant funding opportunities on the UKRI funding finder.

Key reports

The battery gap: investment into battery and electro-mobility technology companies is a report analysing the battery investment landscape in the UK, and investigating why prominent electro-mobility investors are not investing in battery companies.

The Electric vehicle battery tech in the UK 2024 report has been commissioned to provide a data-driven picture of the EV battery venture capital investment landscape in the UK and globally. The report focuses on Faraday Battery Challenge-funded start-ups since 2018, whether they are UK-based EV battery companies or not.

This report builds upon previous research such as Electric vehicle battery tech in the UK 2023, commissioned by the Faraday Battery Challenge from data management provider Dealroom.co.

Faraday Insights

The Faraday Institution regularly publishes ‘Faraday Insights’. These publications are evidence-based briefings and assessments of the market, economics, commercial potential and capabilities for energy storage technologies and the transition to a fully electric UK.

The Faraday Insights aim to help bridge knowledge gaps across industry, academia, and government.

Sign up to receive Faraday Insights.

Standards and guidelines

Standards and best practice have a crucial role to play in the Faraday Battery Challenge and in supporting the growth of the industry in the UK and internationally.

The British Standards Institution (BSI) is leading the standards programme for the Faraday Battery Challenge. It produces technical standards on a wide range of products and services, and also supplies standards certification services for business and personnel which is sponsored by Innovate UK and the Faraday Battery Challenge.

The standards programme, which started in 2019, covers three areas of work:

  • scoping including workshops and research on the current standards landscape
  • the development of three PAS (Publicly Available Specifications)
  • strategic roadmap for future standards and standards uptake

Find out more about Faraday Battery Challenge’s work with BSI.

Collaboration opportunities

The Cross-Sector Battery Systems Innovation Network, co-funded by Innovate UK Business Connect and the Faraday Battery Challenge, aims to create an open and collaborative cross-sectoral community for researchers and innovators in battery manufacturing (including next-generation batteries), the related supply chain and end users.

Workforce development

The Faraday Battery Challenge is working to support workforce development of the battery industry in the UK to tackle known skills challenges, collaboratively aligning industry and skills providers across the UK through a skills framework and unlocking training demands in regions linked to industry need.

We are working in partnership with Faraday Battery Challenge-funded regional skills partners:

The Electrification Skills Network works collaboratively to align industry, skills providers, and accreditation bodies as a comprehensive reference point for electrification skills.

Past projects, outcomes and impact

You can find details of all projects funded under this challenge up to September 2024.

Impacts of Faraday Battery Challenge include:

  • £1.2 billion investment in challenge-funded start-ups
  • £800 million additional investment in industrial projects
  • challenge-funded start-ups valued at £2.4 billion
  • 2,400 jobs created by challenge-funded start-ups
  • 1,000 jobs secured through projects

Faraday Battery Challenge: success stories (discover.ukri.org) gives an overview of the impact delivered through the challenge and highlights many success stories of organisations that have been funded over the last seven years.

Impacts from the Faraday Institution

1,008 high-quality scientific publications to October 2024, with:

  • 2,685 authors across 454 institutions and 44 countries
  • 89.6% in top quartile journals, 63.1% in the top 10% of journals
  • 47.4% in the top 10% most cited publications worldwide

Empowering industry through early-stage commercialisation:

  • 52 inventions identified (20 patents and 10 published)
  • 15 spin-out companies supported

Informing policymakers through evidence-based insights:

  • 21 Faraday Insights
  • 16 reports
  • contributions to 13 national consultations

Creating a diverse and dynamic pool of talent:

  • 100 Faraday Institution PhD researchers in bespoke training programme
  • over 100 additional PhDs affiliated with battery projects
  • 310 undergraduate interns
  • over 13,500 young people engaged with through the Fully Charged Battery Box Programme

See Faraday Institution impacts in supporting start-ups and launching spin-outs

Impacts from the UK Battery Industrialisation Centre

Impacts from UKBIC include:

  • 35 companies on more than 70 contracts to support the growth in cell scale-up, and module and pack development and manufacturing
  • more than £2 million collaborative research and development funding
  • nearly 2,000 hours of external training delivered since 2023, across face to face, classroom, and through training delivered alongside experts working on UKBIC’s battery manufacturing line
  • 500 visits from a range of organisations, including 30 international delegations from (amongst others) the US, Canada, Japan, Australia, Germany, Singapore, Sweden, China, Thailand and Malaysia

Project impact stories

See some examples of impact success stories coming from projects funded under this challenge:

 

Last updated: 16 December 2024

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