Government funding announced for the automotive industry
33 pioneering automotive projects have been selected to receive more than £47m in government funding. This is as part of the UK government’s £4bn DRIVE35 programme, delivered by the Department for Business, Innovation, Science and Trade (BIST) in partnership with the Advanced Propulsion Centre UK (APC) and Innovate UK.
DRIVE35 forms a core part of the UK government’s Advanced Manufacturing Sector Plan and Industrial Strategy, supporting the transition to zero-emission vehicle technologies. The programme supports businesses through targeted funding from early-stage innovation to commercialisation and manufacturing scale-up.
It aims to help businesses bring innovative technologies to market, creating skilled jobs, attracting private investment, strengthening domestic supply chains and reinforcing the UK’s position as a global leader in automotive innovation.
The latest funding allocation will leverage over £90m of total project investment, supporting technologies across electrification, battery innovation, advanced manufacturing, digitalisation, circular economy solutions and zero-emission mobility, combining UK government grant funding with significant private sector co-investment.
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 £2.7m.
Collaborate: Enabling collaborative R&D projects to accelerate innovation. Two collaborative R&D projects awarded over £8m.
Demonstrate: Supporting real-world demonstration of innovative technologies. Ten projects awarded £9m.
Scale-up Fund: Helping businesses bridge the gap between innovation and manufacturing at scale. Five projects awarded £26.9m.
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.”
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.”
Alongside today’s DRIVE35 announcement, the UK government has also confirmed the latest projects to receive support through the CAM Pathfinder programme, which is accelerating the deployment of Connected and Automated Mobility (CAM) technologies across the UK. Together, DRIVE35 and CAM Pathfinder demonstrate the breadth of the UK’s investment in automotive innovation, supporting technologies from zero-emission powertrains and manufacturing through to connected and automated vehicle deployment.