Will Roberts

The greater deployment of drones is having a profound impact on the modern battlefield and has put the geopolitics of the battery supply chain into a new spotlight. In 2025, drones accounted for 39.2% of defence demand for batteries, according to Benchmark. This is up from just 20% in 2020. Soldier power and bases are the two next largest drivers of defence demand for batteries. "Drones have clearly risen to be the most influential aspect of modern military battery demand,” said Will Roberts, Benchmark’s automotive research lead.  “Major militaries are still just getting started in their strategic investments relating to them which is about to set off a flurry of activity to domesticate supply chains, something which is getting significant attention from major battery manufacturers and new entrants alike."

The UK government has today launched its consultation on the zero emission vehicle (ZEV) mandate, which provides headline target values for ZEV sales for each manufacturer in the UK, culminating in a 100% ZEV target by 2035. The targets have faced pushback from OEMs and their representatives in the UK in recent years for the rapid trajectory they set, though OEMs have succeeded in meeting its demands. The UK’s 2026 YTD EV penetration rate (including PHEVs) exceeds 33%, ahead of Germany, France, Italy and Spain.

The US government has signed nearly $2 billion in deals looking to strengthen the US’s supply chain security for critical minerals and technologies. The capital takes multiple forms from equity loans to direct investments. The largest is a $1.4 billion conditional loan to Sila Nanotechnologies, a US-based silicon anode company. The company currently operates a facility in Moses Lake, Washington with plans for a second phase of production towards the end of the decade. This latest round of funding builds on the plethora of investments the US has made in the battery and critical mineral space over the course of Donald Trump’s second presidency such as investing in MP Materials’ rare earths project and Ivanhoe Electric’s Santa Cruz copper project. “While the Trump Administration continues to invest in critical minerals, know-how, and strategic technologies to build a mine-to-magnet supply chain, these recent investment announcements also reflect the US ambition to build a next-generation mine-to-battery supply chain to reduce its dependence on China,” said Bryan Bille, Benchmark’s policy and geopolitics principal.

Since the final draft of the One Big Beautiful Bill Act, now more than a year ago in July 2025, the outlook for EV Sales in the US had been condemned for 2026. , previous tax credits fading into consumers memories and some new models inbound, is the US EV market starting to show green shoots among the rubble?  The removal of the $7,500 federal tax credit for new EV sales came at the end of September 2025. With public knowledge of the cliff edge in the three months prior, a large ramp up and consequent drop in EV sales was witnessed.   In 2026, the effective price rise across the most popular EV models created an expectation of a near 30% drop in EV sales in our forecast. In the early months of 2026, that trend was very much followed. January sales saw downward movement of 31%, followed by the same again in February. Q1 was rounded out by the comparison deteriorating further, to a low of -35% compared with March 2025. Overall, for the quarter, EV sales were down 32.4%. 

Electric vehicle (EV) manufacturer Polestar is to exit the US market after the US Department of Commerce said it would not grant the majority-Chinese-owned, Sweden-based company authorisation to sell its vehicles in the country. Only 6% of its retail sales came from the US in Q1 2026, the company has said. The company is majority-owned by Geely, and had previously indicated that the Connected Vehicle Rule, proposed under the Biden administration to restrict import of vehicles using Chinese software and hardware, would largely prevent it from selling in the US. Since being passed, the rule has been upheld by the Trump administration, and the fresh decision to withhold authorisation reflects sustained US efforts across party lines to limit sales of Chinese EVs in the market.

Stellantis used its Investor Day on 21st May in Auburn Hills Michigan to unveil FaSTLAne 2030, a €60 billion (~$70 billion) strategic plan that attempts to be all things to all markets. Strategies are now clearly realigned by region with a return to muscle in the US, and a multi-energy product offensive with a distinctive battery electric vehicle (BEV) spin in Europe. “FaSTLAne 2030 is a much-needed reorganisation of a firm that has been itching for a reset since the Tavares era,” said Will Roberts, Benchmark’s automotive research lead. “Creating separate pathways for North America and Europe is a clear win in the near term, where the product roadmaps look well suited for both. However, the diversification may further fragment a group of brands which have not always been pulling in the same direction, especially in the context of longer-term electrification.”

Higher petrol prices and the threat of supply disruption have made consumers think twice about buying new internal combustion engine (ICE) vehicles and instead consider buying a battery electric vehicle (BEV). Early data releases covering battery electric vehicle (BEV) sales around the world for March 2026 show a clear uptick in interest due to the ongoing conflict in the Middle East and the closure of the Strait of Hormuz. Almost every market with released data has so far shown a greater year-on-year increase after the start of the war in Iran (based on March registrations) than before the war began (based on January and February registrations).

BYD may be using lithium iron manganese phosphate (LMFP) cells for its new Blade 2.0 battery platform, unveiled earlier in March, though it has yet to officially declare which chemistry will be used.  A key advantage of the new platform is support for “flash charging” which BYD claims can charge the battery from 10% to 70% in just five minutes when connected to its new 1,500kW charging system.  BYD’s patent activity related to manganese-doped phosphate systems alongside reported improvements in energy density, and reference to a 3.8V operating voltage all point towards BYD using LMFP in the platform.  If BYD does use LMFP for Blade 2.0, Benchmark calculates that this could increase 2026 battery-grade manganese demand by 7%.

The new generation of BYD’s Blade battery has come later than expected with the improvement in energy density falling short compared to some rival technologies. The design instead targets faster charging as a differentiator to win over consumers.

The EU Commission's proposed Industrial Accelerator Act (IAA) introduces new “Made in EU” stipulations for electric vehicles as part of a range of measures aimed at increasing the manufacturing sector’s share of the bloc’s GDP to 20% by 2035, up from 14.3% in 2024. The act was proposed on Wednesday 4 March after delays and renegotiations pushed its publication to the wire. Further negotiations between the Council and the European Parliament are required before the IAA can be adopted and enter into force. The “Made in EU” rules add tough requirements for automakers looking to benefit from incentive schemes, financial support for corporate vehicles, or public procurement, though there are exceptions for the “small cars” segment.

Following ongoing negotiations between the EU and China, the EU is preparing to introduce minimum pricing mechanisms for Chinese‑made BEVs imported into the bloc. This move follows the EU’s final ruling on tariffs in October 2024. What are the tariffs? Since 2024, Chinese OEMs have been subject to countervailing duties ranging from 7.8% to 35.3%, […]