UK's automotive sector will receive nearly £130 million in government and industry funding to develop zero-emission vehicle technologies and support more than 1,800 manufacturing jobs across the UK.
Almost £65m in government funding, matched by industry, will support projects including self-driving cars and efforts to make electric vehicles more affordable.
Auto firms and research and development partners have been awarded nearly £50m in government funding through the DRIVE35 programme to develop and produce zero-emission vehicle technologies at scale.
The funding is part of the government’s Modern Industrial Strategy and DRIVE35, which includes £4 billion through 2035 to support the electrification of the automotive industry.
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.
“Through our Modern Industrial Strategy we’re backing working people and British businesses to deliver growth in every part of the country.”
The funding will support companies including Turntide Technologies and Bentley in the North East and West Midlands. The government said more than £100m in DRIVE35 grants had already been provided to supply chain businesses in the two regions.
The government is also providing £17m for nine Connected and Automated Mobility (CAM) Pathfinder projects. The projects will cover technologies including sensors, brake-by-wire systems and AI simulation, as well as applications in public transport, passenger mobility, construction, airport operations and highways maintenance.
The Society of Motor Manufacturers and Traders (SMMT) expects the CAM industry to create tens of thousands of jobs and contribute around £66bn to the economy by 2040.
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.”
DRIVE35 is designed to support more than 50,000 direct jobs and tens of thousands more in the supply chain by 2035, while cutting millions of tonnes of CO2 emissions and unlocking billions in private investment.
The funding from the Department for Business, Innovation, Science and Trade is being facilitated by the Advanced Propulsion Centre UK in partnership with Innovate UK.
