Weakening the Government’s Zero Emission Vehicle (ZEV) mandate could halve investment in the UK’s EV charging network over the next five years, according to a new report commissioned by ChargeUK.
The study, produced by consultancy LCP Delta, concludes that a stable policy environment is critical to maintaining investment in charging infrastructure as the sector continues to build capacity ahead of EV demand.
The report estimates the EV charging industry will generate £15.5 billion in direct economic value between 2025 and 2035, while supporting a wider £385bn contribution from transport electrification across the UK economy.
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Delaying ZEV targets is a major threat to future investment
The report is being launched at an event in London attended by transport minister for decarbonisation Keir Mather and energy minister for climate Katie White.
ChargeUK said the findings highlight the importance of maintaining confidence in the transition to EVs, particularly as many charging businesses remain pre-profit while investing heavily in infrastructure.
According to a survey of ChargeUK members, weakening the ZEV mandate’s sales targets would reduce charge point operator investment by around 50% during what the report describes as a critical growth period for the sector.
The Society of Motor Manufacturers and Traders has repeatedly called for an urgent review of ZEV targets, over concerns on retail demand and the profitability of EV sales.
The report also identifies delaying the Government’s 2030 and 2035 vehicle electrification milestones, rising energy costs and grid connection delays as major threats to future investment.
By contrast, ChargeUK said policies designed to reduce the cost of public charging could unlock an additional £5.7bn of infrastructure investment over the next five years.
Among the measures highlighted are equalising VAT between public and home charging, providing relief from energy policy levies and reducing fixed energy costs for charging operators.
The report forecasts that by 2035 the UK charging sector will support 71,500 direct and indirect jobs and help enable a total of 334,000 jobs across the wider EV ecosystem, including battery manufacturing, vehicle production, retail and servicing.
It also predicts the sector will attract £30bn of external investment and support the deployment of 9.75 million charge points across homes, workplaces and the public charging network.
The charging sector’s direct economic contribution is expected to rise steadily throughout the decade, reaching £2.5bn in annual gross value added by 2035, equivalent to compound annual growth of 37%.ChargeUK is urging ministers to focus on measures that make public charging more affordable rather than revisiting vehicle sales targets, arguing that lower charging costs would stimulate EV demand while encouraging further private sector investment.