The take-up of electric vehicles in the UK and some other countries is stalling, which could depress demand for lithium contract processing. But a new bid by oil firm Shell to create the perfect battery and ease range anxiety might change matters significantly.

As the UK and Europe roast in an unprecedented heatwave, the need to tackle climate change is more evident than ever. However, the part of the equation that involves reducing vehicle emissions has proven to be somewhat fraught.

Earlier this month, the BBC reported that the government is set to water down the target, introduced in 2020, for 80 per cent of new cars sold in the UK to be electric vehicles (EVs) by 2030.

A consultation will take place on how much to lower the figure to, with estimates of the new target ranging between 50 and 70 per cent.

Whether the forthcoming change of prime minister will alter this remains to be seen, but plans to change the target will have been drawn up, perhaps reluctantly, in order to face the reality of how the market is currently developing.

 

What Is The Rate Of EV Adoption in Britain?

This highlights the simple fact that the rate at which Britons are switching from petrol and diesel is too slow for the government’s liking, especially with Net Zero goals in mind.

For example, the latest data from the Society of Motor Manufacturers and Traders shows that:

  • New EV registrations in May 2026 were just over 160,000, up 10,000 on the same month in 2025
  • In the year to date, new EV registrations have totalled 934,000, up 8.7 per cent from 850,903 at the same period in 2025
  • However, this increase is not fast enough to enable the UK to stay on course for the 2030 target

The BBC report noted that the reasons for motorists being reluctant to get EVs include range anxiety, the fear of running out of power without any chargers nearby. Another concern is how long charging can take compared with filling up at the pumps.

Although the number of chargers in the UK is rising rapidly, improvements in battery technology may be just as influential in tackling this concern.

 

How Can Shell Ease Range Anxiety And Increase Charging Speed?

Few might have imagined that Shell, one of the world’s biggest oil companies, would be at the forefront of trying to solve the problem. But, as Carsguide reports, the firm embarked on the quest to make the perfect EV battery and the quickest charging system.

Shell has come up with a new charging system that uses an advanced thermal fluid designed to prevent overheating, removing one of the impediments to fast charging. This non-conductive fluid will surround the battery.

Alongside this, it is developing more energy-efficient cars and batteries to enable smaller cars to drive further on a small battery.

As the report notes, it is not the only manufacturer involved in pursuing the goal to create the ideal battery with more rapid charging, but success in this project could be a game-changer for EVs.

It may seem surprising that an oil company should be so heavily involved in activities that could result in reducing petroleum demand. However, Shell has been diversifying in recognition of the transition away from fossil fuels, and runs its own EV charger network.

This means the company is now deeply invested in a future in which its business model will focus increasingly on providing charger services for a growing EV market, a growth it is working to accelerate.

 

How Will Faster Charging And Less Range Anxiety Affect the Lithium Industry?

With such improvements, demand for EVs could be expected to rise much faster, meaning more lithium processing will be needed.

Among the winners from such a development could be the nascent British lithium mining industry, with mines and thermal extraction plants being developed at Eastgate in County Durham and at Trelavour and several other sites in Cornwall.

Alongside this, the first lithium processing plants in the UK designed to produce battery-grade lithium are being built at the Tees Freeport, run by Tees Valley Lithium and Green Lithium respectively.

Green Lithium noted that at present, global lithium processing capacity is set to undershoot demand by 58 per cent by 2030, which creates great demand for more processing capacity, but also a major opportunity.

Of course, such estimates of demand could be wrong, a key reason for this being that the estimates of EV take-up are overoptimistic.

However, if the efforts of Shell and other companies to create better EV batteries, increase the range of cars (especially smaller cars) and increase access to chargers are successful, the targets for EV adoption may not need to be watered down so much.