Octopus Electric Vehicles, a subsidiary of Octopus Energy, has secured a strategic finance deal worth £550 million ( about $700 million) with Lloyds Banking Group (LON:LLOY) to boost its employee-focused electric vehicle (EV) discount scheme. This initiative allows for salary deductions to facilitate the purchase of new EVs, offering significant savings and tax benefits.

Since its inception in 2019, Octopus Electric Vehicles has financed over £450 million in EVs across the UK. Their comprehensive package includes not just the vehicle, but also a charging unit and access to discounted energy tariffs. The company boasts a vast selection of more than 85 models from at least 28 manufacturers and has garnered support from over 4,000 businesses, including prominent names like Dyson and McLaren, to accelerate the shift towards less polluting transportation.

Fiona Howarth, CEO of Octopus Electric Vehicles, stated that this collaboration with Lloyds Bank will “supercharge the transition” to a more sustainable transport sector by reducing carbon emissions. The partnership also aims to extend the reach of Octopus Electric Vehicles in offering affordable and environmentally friendly vehicle options.

Highlighting the financial viability of this shift, Howarth noted a significant decrease in EV battery prices over time. This trend is expected to contribute to an increase in electric vehicle adoption, with forecasts predicting more than half a million new electric vehicles being added to UK roads annually by 2028.

The securitisation partnership with Lloyds Bank marks a substantial step forward for Octopus Electric Vehicles as it continues to drive forward its mission of making sustainable transport more accessible for UK consumers.