Government awards £50m for zero-emission technologies

Auto firms and key R&D partners have been awarded nearly £50 million in government funding for 33 projects designed to encourage businesses to build and produce the zero-emission vehicle technologies of the future at scale, helping to drive economic growth while simultaneously making EVs cheaper for consumers.

The funding is delivered through the DRIVE35 programme, described as the biggest government investment into the UK’s car industry of the post-war era, with £4 billion to 2035 targeted at speeding up the electrification of the automotive industry.

Government grants will be matched by industry investment, with projects facilitated via the Advanced Propulsion Centre UK (APC), which was set up in 2013 to accelerate the technologies that support the transition to zero-emission vehicle manufacturing. In total the funding available through the programme will reach £130 million.

The latest funding allocation will leverage over £90 million of total project investment, supporting technologies across electrification, battery innovation, advanced manufacturing, digitalisation, circular economy solutions and zero-emission mobility.

The successful projects span multiple DRIVE35 funding streams, demonstrating how the programme supports businesses at every stage of the innovation journey.

Mobilise: Early-stage start-ups, university spinouts and SMEs supporting breakthrough automotive innovation. Sixteen innovative businesses awarded over £2.7 million.
Collaborate: Enabling collaborative R&D projects to accelerate innovation. Two collaborative R&D projects awarded over £8 million.
Demonstrate: Supporting real-world demonstration of innovative technologies. Ten projects awarded £9 million.
Scale-up Fund: Helping businesses bridge the gap between innovation and manufacturing at scale. Five projects awarded £26.9 million.

Ian Constance, Chief Executive at the Advanced Propulsion Centre UK, said: “The projects announced today demonstrate the depth of innovation and engineering excellence that exists across the UK automotive sector.

Through DRIVE35, we are supporting businesses to move promising technologies to commercial deployment and manufacturing at scale.

“This investment is about far more than individual projects. It is about strengthening the UK’s capability to design, develop and build the technologies that will define the vehicles of the future. By bringing together industry, government and academia, DRIVE35 is helping create the conditions for long-term growth, increasing investor confidence and reinforcing the UK’s position as one of the world’s leading destinations for automotive innovation.”

In addition a further £17 million will be given to nine new CAM pathfinder projects that show the breadth of the UK’s connected and automated mobility sector, from enabling technologies such as sensors, brake-by-wire systems and AI simulation to real-world deployment in public transport, passenger mobility, construction, airport operations and highways maintenance.

Industry Minister Blair McDougall said: “Britain invented the modern motor industry and we’re determined to ensure the next generation of vehicles are designed and built here too.

“This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain.”