Major government investment to drive innovation and scale-up in the automotive sector
The Advanced Propulsion Centre UK (APC) and the Department for Business and Trade have announced multi-million-pound grants for new zero-emission vehicle and mobility innovation projects.
Following the Advanced Manufacturing Sector Plan, and launch of DRIVE35, Business and Trade Secretary Jonathan Reynolds has revealed the successful applicants of the latest APC-facilitated funding to enable innovative zero-emission vehicle technologies in the UK.
They include large UK-based OEMs; Cummins, Mercedes AMG, JLR, and Ford.
A combined total of £138.1m of investment, from both industry and government, will support innovation in the UK’s automotive supply chain, generate growth, and drive the industry’s transition to net zero forward.
For the first time, the funding will also support small businesses in connected and automated mobility (CAM) development.
The announcement also includes two major capital investments through the Automotive Transformation Fund (ATF).
It provides backing for Dana UK Axle, a global leader in drivetrain and e-Propulsion systems, to put full electrification products in their plant in Witton, Birmingham; and support for Astemo, providers of systems and products for the automotive industry, to manufacture electric inverters in the UK.
The Secretary of State also announced the next round of funding competitions under DRIVE35, with several opening for applications from today, Monday 14 July, and the Centre for Connected and Autonomous Vehicles (CCAV) CAM Pathfinder programme.
Ian Constance, CEO, Advanced Propulsion Centre UK and Zenzic said: “This new investment underlines the commitment from government to secure advanced manufacturing in the UK. I am pleased that the APC, Zenzic, and its delivery partners are here to facilitate a new wave of funding in the automotive industry, supporting innovation, driving scale-up, and enabling transformation.
Today, we have announced projects receiving four types of grants that boost the UK’s leadership in automotive manufacturing. They will enable the rapid development of demonstrators featuring cutting-edge technology, accelerate ambitious SMEs, and support vital collaborative R&D innovation. This will encourage further investment in the UK’s growing zero-emission supply chain, safeguarding skilled jobs, building on the country’s reputation as a world-leader for technology.”.
Business and Trade Secretary Jonathan Reynolds said: “We’re helping British carmakers get to the front of the pack by working hand in hand with investors to build a globally competitive electric vehicle supply chain in the UK as we deliver our Plan for Change.
“We’re taking action to back the industry for the future with the biggest set of announcements for the sector in the last decade. This includes securing a landmark trade deal with the US to bring down tariffs for British car manufacturers, measures in our modern Industrial Strategy to lower electricity prices and updating the ZEV mandate, supporting UK manufacturers to safeguard jobs, and secure the future of the sector.”
“Economic growth is our number one priority, and by funding our world leading auto sector we are creating the right conditions for increased investment, bringing growth, jobs, and opportunities to every part of the UK.”
The investments come under the UK government’s DRIVE35 ‘Driving Research and Investment in Vehicle Electrification’ initiative, that will ensure the UK remains at the forefront of zero-emission vehicle manufacturing.
The competition processes will open at regular intervals throughout the year, accessed through the APC and via the Innovate UK Innovation Funding Service (IFS).
Following its launch, the grants that are opening for applications today, Monday 14 July are: Collaborate, Demonstrate, and Scale-up Feasibility Studies, as well as expressions of interest for the new and improved Automotive Transformation Fund (ATF).
The APC is taking enquiries now to help companies prepare a project pitch and align it with the most suitable funding stream available through the DRIVE35 initiative.
The successful project investments announced include:
Collaborate
Five leading automotive companies and the government have invested a combined total of £73.8m towards envelope-pushing collaborative R&D projects.
JLR, Mercedes AMG, and Phinia Delphi are among the successful applicants which have built consortia to be guided by the APC’s team of dedicated project delivery leads.
With £36.8m in Collaborate grants provided through DRIVE35, by the Department for Business and Trade, and facilitated by the APC, the projects aim to develop high-performance electric drives, better battery technology, and more efficient fuel cell systems.
Mint Biomining and Belfast-based Ionic, are leading projects that will transform the supply chains for sustainable rare earth materials in batteries and in magnets.
More details of the Collaborate projects
Demonstrate
34 projects share a £61.1m investment for fast-start projects aimed at rapidly developing automotive products with a clear route to market.
This includes £30.1m of support from the Department for Business and Trade and DRIVE35, delivered through the APC, and matched by industry funding.
Projects have up to 12 months to demonstrate a product, system, or vehicle.
These include the development of electric motorcycles, a mobility microcar for wheelchair users, an electric road sweeper, and the return of a classic brand name.
More details of Demonstrate projects
Mobilise
17 companies in the UK’s innovative automotive and mobility sector have been awarded a share of over £3.2m in government grant-funding.
These SMEs will take part in our accelerator programme, Mobilise, with companies in previous cohorts having gone on to raise over £350m in private investment.
Each organisation will receive up to £180,000 in grant-funding with tailored business support delivered by the APC and Zenzic through the Mobilise programme.
For the first time, entrants include projects working on connected and automated mobility (CAM) solutions, as well as zero-emission vehicle development, including: improved battery performance, intelligent mobility, advanced motors and electronics, and sustainable manufacturing processes.
Support is provided from both DRIVE35 and the new Centre for Connected and Automated Vehicles (CCAV) CAM Pathfinder programme.
More details of the Mobilise projects
Automotive Transformation Fund (ATF)
As part of this wider automotive investment package, the UK government has also today announced funding support for two companies via the ATF.
It includes support for Astemo, providers of systems and products for the automotive industry, to manufacture inverters in the UK. With investment from both the company and government it, amounts to a total investment of £115m for the Bolton-based facility.
As well as backing for Dana UK Axle, a global leader in drivetrain and e-propulsion systems, to put full electrification products in their plant in Witton, Birmingham, with a total investment of £15m.
This displays a strong commitment to the government’s vision to decarbonise the UK on the path to net zero by 2050 and securing the future of the automotive industry.