UK’s £500m remanufacturing sector set to harness green growth potential

UK’s automotive remanufacturing sector – which returns used cutting-edge parts to same-as-new or better condition – can drive green growth and drastically cut dependence on new, rare raw materials.Growing opportunity for expanding remanufacturing of components such as batteries, brakes and tyres, with record numbers of vehicles on UK roads.

Placing automotive remanufacturing at the heart of the UK’s circular economy strategy will deliver economic and sustainability dividends.

Britain’s automotive remanufacturing sector can drive economic growth and greater resource independence, by returning cutting-edge and costly vehicle parts to same-as-new or better condition – while saving as much as 88% in raw materials compared with a new product, according to a new report by the Society of Motor Manufacturers and Traders (SMMT).

Auto remanufacturing is now worth £500 million to the UK economy but the sector could claim an even bigger prize with a larger portion of a rapidly growing global market – one that is expected to expand by more than half to reach £31 billion in the next five years. Such an opportunity, if seized by the UK, would benefit a wide range of remanufacturers in Britain – covering everything from brakes and batteries to tyres and transmissions – driving further job creation and sustainability gains.

Demand for remanufactured parts, and the available supply of the cores needed for their production, is set to be strong with a record 41.9 million vehicles on UK roads last year – and more than two in five of these more than a decade old. Furthermore, with around 1.6 million EVs on the road, Britain has the second largest fleet in Europe. This places the country as a potential battery remanufacturing leader, reducing maintenance costs and, in the longer-term, helping to reduce dependence on imports of scarce raw materials needed for domestic vehicle and component production.