UK’ s £ 500m remanufacturing sector set to harness green growth potential
n The 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 and rare raw materials. There’ s a 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.
By remanufacturing and rebuilding, Britain’ s automotive remanufacturing sector can drive economic growth and greater resource independence. This can save as much as 88 % in raw materials when 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. More than two in five of these are more than a decade old. Furthermore, with around 1.6 million EVs on the road, Britain has the secondlargest 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.
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Spring 2026 The Engine Rebuilder 17