Battery Futures Series - Part 1: Beyond automotive: why the UK's battery opportunity is bigger than we think

Battery Futures is a thought leadership series from the Cross-Sector Battery Systems Innovation Network. Drawing on discussions from the Cross-Sector Battery Showcase and wider industry engagement, each article explores one of the key themes shaping the future of the UK’s battery ecosystem.

Posted on: 20/07/2026

For much of the past decade, the UK’s battery conversation has been dominated by a single narrative: electric vehicles.

That focus has been understandable. The transition to electric mobility represents one of the most significant industrial transformations of our generation. Gigafactories, vehicle production, charging infrastructure and automotive supply chains have become central to discussions about the future of electrification, industrial strategy and net zero.

Yet while automotive continues to play a critical role, the conversations emerging from the Cross-Sector Battery Showcase suggest something much bigger is taking shape.

The future of batteries is not solely an automotive story.

Instead, batteries are increasingly becoming a strategic capability that underpins multiple sectors across the economy, from energy and transport to defence, aerospace, maritime and the built environment. The technologies, supply chains, business models and partnerships required to support this transition are evolving rapidly, creating opportunities that reach far beyond the traditional automotive ecosystem.

 

A technology enabling multiple futures

One of the strongest messages from the showcase was that batteries have moved from being viewed as discrete technology to being foundational enablers within a system.

Whether supporting grid flexibility, powering military assets, reducing emissions in rail transport, enabling more-electric aircraft, optimising energy use in homes or strengthening national resilience, batteries are becoming integral to the systems that will shape the future economy. This shift fundamentally changes the nature of the opportunity.

Historically, many battery discussions have focused on manufacturing volumes and scale. Automotive is the largest market and has shaped much of the industry’s technological development, investment and global supply chains. However, many sectors represented at the showcase highlighted a different reality: while individual applications may require lower volumes, they often have highly specialised performance requirements and can create significant value in their own right.

Defence systems need resilience, reliability and secure supply chains. Aerospace places unique demands on weight, safety and certification. Grid infrastructure requires durability, flexibility and long operational lifetimes. Domestic energy systems must deliver affordability alongside performance.

These applications may all use batteries, but will they all usethe same or different batteries is the current question.. Understanding the differences and where there are similarities may become one of the most important drivers of future innovation.

The UK’s potential strengths

This matters because it aligns closely with many of the UK’s existing capabilities.

Throughout the showcase, participants repeatedly pointed to the UK’s strengths in advanced engineering, specialist manufacturing, systems integration, testing, safety, certification and research excellence. While the UK may never seek to compete directly with larger manufacturing economies across every segment of the battery value chain, many attendees argued that the country is exceptionally well positioned to succeed in high-value applications where technical performance matters most.

Industries such as aerospace, defence, motorsport, maritime and critical infrastructure were frequently cited as examples where the UK already possesses globally recognised expertise and established industrial strengths. These sectors demand innovation, reliability and performance rather than simply scale.

This creates opportunities for organisations developing new battery technologies, advanced materials, safety systems, diagnostics, power electronics and integrated energy solutions. The opportunity therefore extends beyond battery cells themselves.

It includes the broader ecosystem of technologies, services and capabilities that enable batteries to be designed, tested, manufactured, integrated, monitored and ultimately reused or recycled.

UK momentum

The UK is not approaching this opportunity from a standing start. Over recent years, a more connected battery ecosystem has begun to emerge, supported by targeted programmes, innovation networks and sector-specific funding. The Battery Innovation Programme is continuing to build and fund the ecosystem across the UK and TRL levels, and other targeted funding streams, for example support for clean maritime innovation through UK SHORE, are helping to move the conversation from potential to practical deployment.

Alongside this, the Cross-Sector Battery Systems Innovation Network has played an important role in connecting organisations working across transport, energy, defence, aerospace, maritime and the built environment, helping to surface common challenges and identify opportunities for collaboration. Together, these activities show that the foundations of a broader UK battery economy are already being built.

 

From concept to reality

Importantly, the showcase demonstrated that these opportunities are no longer theoretical. Throughout the day, speakers presented examples of battery technologies already being deployed in real-world environments.

Positive Traction showcased the conversion of diesel shunting locomotives to battery power, illustrating how electrification can be applied in sectors where traditional routes to decarbonisation may be challenging. The Ministry of Defence discussed lessons learned from electrifying operational vehicles and highlighted the growing importance of energy storage in future military capability. TNEI demonstrated how battery systems can improve resilience across electricity networks, while Wondrwall showcased the role batteries can play in enabling smarter and more affordable home energy systems.

Collectively, these examples tell an important story. The challenge is no longer proving that batteries can work in different sectors, it is increasing adoption and deploying battery systems at scale.

A different kind of challenge

If there was one theme that consistently emerged across the showcase, it was that the UK’s primary obstacle is no longer technology.

Attendees repeatedly highlighted commercialisation, scale-up and market development as the most significant barriers facing the sector today. The UK is widely recognised for the quality of its scientific research, innovative companies and technical expertise. Yet many participants expressed concern that too much value continues to leak from the system before innovations reach large-scale deployment.

The barriers identified were interconnected.

Access to finance remains difficult for many businesses. Manufacturing capability is still developing. Supply chains remain fragmented. Customer demand can be uncertain. Regulatory frameworks continue to evolve. Skills shortages persist in some areas.

Individually, none of these challenges are insurmountable. Together, however, they create friction that slows the journey from innovation to industrial impact.

This raises important questions about how innovation support, industrial strategy and investment can work together to accelerate commercial deployment and strengthen domestic capability. Some of this will be address by the new Innovate UK Prospectus.

Why collaboration matters more than ever

One encouraging conclusion from the showcase was the growing recognition that no single organisation can solve these challenges alone.

Battery innovation sits at the intersection of science, engineering, manufacturing, finance, regulation and end-user demand. As a result, progress depends on collaboration across the entire ecosystem.

This was reflected not only in the formal sessions but also in feedback from attendees.

The strongest endorsement of the event was not simply the quality of the presentations or the exhibitors. Rather, it was the opportunity to connect people from different sectors, share perspectives, identify common challenges and explore new partnerships. Attendees consistently highlighted networking and collaboration as among the most valuable aspects of the day.

That observation may be more important than it first appears.

Many of the future opportunities in batteries will emerge at the boundaries between sectors. Defence may learn from aerospace. Grid applications may create opportunities for technologies developed in transport. Innovations in battery diagnostics may support circularity and recycling. New business models may connect domestic energy systems with wider energy flexibility markets.

The future battery economy is unlikely to be built in silos.

Looking ahead

The central lesson from the Cross-Sector Battery Showcase is both simple and profound.

The UK’s battery opportunity is bigger than we think.

It is bigger than automotive. Bigger than any individual technology. Bigger than any single sector.

Success will depend on our ability to connect multiple markets, multiple supply chains and multiple communities around a shared vision of how batteries can support economic growth, industrial resilience and the transition to a net zero future.

In the next article, we will explore perhaps the most important challenge facing the sector today: how to move from innovation to industrial impact, and what it will take to bridge the gap between world-class research and world-leading commercial success.

Related programme

Cross-Sector Battery Systems Innovation Network

Cross-Sector Battery Systems Innovation Network

The Cross-Sector Battery Systems Innovation Network, funded by Innovate UK, is a cross-sectoral and collaborative community of technology developers and end-users.

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