The UK Secures US$621m Investment for Battery Technologies
The UK government is set to invest US$621m in the research, development and manufacturing of sustainable battery technologies in the next few years.
On 25 June, the UK’s Department for Business and Trade announced that it had secured funding to support its industrial strategy, a great deal of which centres on climate technology.
The four-year Battery Innovation Programme funding, which runs from April 2026 to March 2030, has been allocated to the government by three key delivery partners: Innovate UK, the Faraday Institution and the UK Battery Industrialisation Centre.
With this long-term project, the UK will aim to position itself as a global leader in the clean energy game, advancing its manufacturing capabilities and driving economic growth.
"Today's announcement will help accelerate growth in the UK's battery sector and shows the innovation community the UK Government's commitment to the sector," said Ben Walsh, Deputy Director of the Battery Innovation Programme.
Focus on next-generation technologies
This project will focus on developing various forms of sophisticated battery technologies, including solid-state, lithium-sulfur and sodium-ion systems, all of which are used to store renewable energy for use during off-peak periods.
The main priorities for the R&D teams will be making batteries cheaper, more sustainable and fully recyclable, while also improving their performance and efficiency in storing energy.
The funding is also set to support technology transfer initiatives, connecting academic researchers with UK industry partners and investors with the aim of establishing good working relationships throughout the country’s climate tech sector.
Martin Freer, CEO of the Faraday Institution, is particularly enthusiastic about the project’s potential to bring these kinds of technologies to commercial markets.
"The UK's sustained investment in research at its world-leading universities is unlocking transformative battery discoveries that, when translated into industry, will drive major advances in performance across multiple sectors," he says.
How the project will be delivered
The programme operates through three key delivery partners, each focusing on different aspects of battery development.
The Faraday Institution leads academic research and development activities.
Innovate UK manages business-led innovation projects.
The UK Battery Industrialisation Centre (UKBIC) handles technology scale-up and skills development programmes.
Sean Gilgunn, Managing Director of UKBIC, believes this investment could be the start of a new chapter for the British renewable energy storage industry.
"This investment programme will help to accelerate next-generation battery technologies, strengthen industrial partnerships, and drive the UK toward a net zero, electrified future through world-leading innovation," he explains.
Building on previous success
The Battery Innovation Programme succeeds the Faraday Battery Challenge, which ran from 2017 to 2025 and supported more than 100 start-ups and created a US$4.4bn ecosystem for battery technologies in the UK.
This previous funding helped the UK achieve fourth place globally for electric vehicle battery venture capital investment.
The government expects the new programme to attract inward investment in both gigafactories and supply chain infrastructure.
Officials project the initiative will create high-quality jobs while supporting the automotive industry's transition to EVs.
Can batteries help lower the UK’s energy costs?
The government's investment comes as UK manufacturers grapple with some of Europe's highest industrial energy costs — 50% higher than those in Germany or France, and four times higher than those in the US.
Trade body Make UK has warned that without energy reform, the manufacturing sector will continue to endure the effects of the ongoing cost crisis.
Meanwhile, climate technology specialist Aggreko is a strong advocate for how battery storage systems could help to manage volatile pricing and grid instability.
"While both understanding and usage of battery storage remains in relative infancy in this sector, there is significant potential for this technology to help address some of the major challenges that UK manufacturing is facing today," says Steve Ennis, Manufacturing Sector Manager at Aggreko.
Battery storage systems can allow manufacturers to store energy during low-demand periods and discharge it during peak operational hours.
This capability proves particularly valuable for managing transient loads, such as during the start-up of electric motors powering industrial equipment.
"When deployed correctly, battery energy storage systems can allow manufacturers to adjust their energy usage dynamically in line with market prices and production schedules, allowing them to remain agile," Steve explains.
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