- The UK Government has launched a £2.5 billion automotive programme called DRIVE35, which looks to support the expansion of the UK’s EV manufacturing and supply chains.
- Existing as part of the country’s new industrial strategy, the new funding will ensure that the UK remains a key global player in the development of zero-emission vehicles and technology such as EVs.
- The funding will target a wide variety of EV-related projects, from mass manufacturing, to startup firms and prototypes.
UK unlocks new capital investment for EVs, batteries, and supply chains
The new programme will take place over a decade, with £2 billion being committed to funding projects in the run up to 2030. The remaining £500 million will go towards research and development all the way to 2035. This new campaign will build on previous automotive investments achieved through both the Automotive Transformation Fund and Advanced Propulsion Centre (APC) R&D competitions,
Through the DRIVE35 programme, three new specific funding competitions have been set up. This includes a new and improved Automotive Transformation Fund, which now has a wider technological scope, and will look to support large-scale investments into the UK’s zero-emission industry. The second will be ‘Scale Up Feasibility Studies’, granting R&D funding for relevant businesses looking to scale up their operations, growing the industry further. Finally, DRIVE35 will also operate ‘innovation’ competitions, supporting ongoing R&D projects based around innovative and new technologies.
The UK’s industrial future within the emobility sector already looked bright before the launch of this programme, thanks to commitments such as Nissan producing three new fully-electric models at its Sunderland plant, and Tata Group-owned Agratas’ new Somerset EV battery gigafactory, set to begin production from 2027 with a maximum production capacity catering for the equivalent of 500,000 electric passenger cars. This new DRIVE35 programme has the opportunity to take investments even further, making the UK a true global leader when it comes to all things electrification.
With the UK now arguably Europe’s hottest EV market, this newly-launched programme will make the upcoming UK EV SUMMIT an even more important forum, helping to connect businesses right across the emobility sector.
This investment has made it a bumper week for UK EV news, with the government also announcing a £63 million package to boost EV charging, through a £25 million cross-pavement charging scheme, the introduction of standardised road signage for public EV charging, grants for business depot charging, and charge point installations at NHS England sites.
Mike Hawes, SMMT Chief Executive, reacted:
“The creation of this dedicated automotive programme is further evidence of the sector’s importance to economic growth. Delivered as part of the Industrial Strategy, DRIVE35 has the potential to unlock investment and innovation in the UK, supporting jobs and creating wealth across the country. The importance of a long term, cross-government strategy with specific measures for automotive cannot be understated given the challenges facing the sector amid geopolitical uncertainty and fierce global competition. DRIVE35, and the wider measures identified in the Industrial Strategy, must now be implemented at pace to ensure the UK is amongst the leaders in next generation automotive technologies.”
Ian Constance, CEO of APC UK and Zenzic, added:
“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.”
