Major Funding Injection for Electric Vehicle Expansion
Octopus Electric Vehicles, the leasing arm of the Octopus Energy group, is set to announce a significant financial boost on Friday. The company has secured an additional £500 million in financing from a consortium of lenders, a deal first revealed by Sky News.
This new capital injection, provided by Lloyds Banking Group, Morgan Stanley, and Crédit Agricole, elevates the company's total available credit facility to an impressive £2 billion. The agreement represents an extension to a facility originally established with Lloyds back in 2023.
Driving the UK's Electric Revolution Forward
The substantial funding is earmarked for a major expansion of the company's operations across the United Kingdom. Octopus EV plans to dramatically increase its fleet size, growing from the current 40,000 vehicles to 75,000 cars on British roads.
This expansion comes at a pivotal moment for the electric vehicle market. Recent statistics show that EVs accounted for 26% of all new car registrations in the UK last month, a record high. The trend is even more pronounced across Europe, where over 1.7 million electric vehicles were registered in September alone, marking a 19% surge compared to the same period last year.
Insiders have indicated that a formal public announcement regarding the funding will be made at the COP30 climate summit in Brazil.
Industry and Government Backing for EV Transition
Gurjeet Grewal, Chief Executive Officer of Octopus EV, commented on the momentum behind the electric transition. "Electric momentum is surging across the UK and Europe," he stated. "Every month, thousands more drivers are discovering just how affordable and enjoyable making the switch can be - and this fresh funding from Lloyds, Morgan Stanley and Crédit Agricole will allow us to bring even more zero-emission cars onto UK roads."
The company offers a comprehensive package for customers, which includes a leased car, bespoke EV energy tariffs, home charger installation, and access to its Electroverse network, described as Europe's largest public charging platform.
The news has also drawn a positive response from the government. Keir Mather, the Minister for Aviation, Maritime and Decarbonisation, highlighted the government's own efforts. "We're backing people and industry to make the switch with £4.5bn investment, and it's great to see industry players like Octopus backing the EV revolution," Mr Mather said.
He noted that the government's Electric Car Grant, launched this summer, has already assisted over 30,000 people with discounts of up to £3,750 on new electric vehicles.
However, this supportive environment faces potential challenges. The minister's comments arrive amidst speculation about a potential pay-per-mile levy on electric car drivers in the upcoming Budget. Furthermore, the Chancellor is reportedly considering reducing or removing tax incentives for salary sacrifice schemes, a specialism of Octopus's EV arm that has been instrumental in driving adoption.
