UK auto firms will benefit from a £2.5 billion UK government commitment over the next decade that aims to ‘support thousands of jobs and help ensure the UK remains at the forefront of zero-emission vehicle development.’
The programme – called DRIVE35 – comprises new and improved funding competitions that will support UK businesses. The programme will fund a wide spectrum of projects which help the transition to zero-emission vehicle manufacturing – targeting established high-volume manufacturing and multi-billion-pound gigafactories, all the way to start-ups, prototypes and ‘cutting-edge automotive innovation’.
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The programme will commit £2 billion in funding to 2030 alongside an additional £500m for research and development to 2035, signalling a ten-year commitment to UK automotive innovation.
The UK government says the funding will provide certainty to the sector, give innovators the confidence to invest in the UK and will support the latest in research and development, unlocking capital investment in zero emission vehicles, batteries and their supply chains.
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.”
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By GlobalDataDRIVE35 will build on previous successes with the Automotive Transformation Fund (ATF) and the Advanced Propulsion Centre UK (APC) R&D competitions, which between them leveraged over £6 billion of investment from the private sector.
Chris Knight, VP, Automotive at NTT DATA UK&I says decade-long funding is exactly what’s needed to unlock EV innovation in an industry defined by long product cycles. But he warns that the UK must also lead on supply chain resilience – from energy security, to actively reshoring critical manufacturing.
Knight said: “The real test of DRIVE35 will be whether it can make the UK an attractive place to invest amid a currently turbulent geopolitical environment and deliver true supply chain security. That means strengthening every layer of the supply chain, from R&D partnerships to energy reliability, as well as improved digital infrastructure to give manufacturers foresight into their supply chain.”
