The UK government has launched the DRIVE35 programme worth £2.5bn ($3.37bn), aimed at propelling the nation's automotive sector into the future of zero-emission vehicle development.
DRIVE35, part of the nation’s “modern Industrial Strategy”, will provide £2bn in funding until 2030 and an additional £500m for research and development (R&D) through to 2035.
This funding will aid innovators to invest in the nation, supporting R&D and unlocking capital for zero-emission vehicles and related supply chains.
The programme encompasses a range of funding competitions designed to support UK businesses transitioning to zero-emission vehicle manufacturing, from large-scale gigafactories to start-ups and automotive innovation.
In 2024, the automotive sector contributed £21.4bn in gross value added (GVA) to the UK economy and employed 132,000 people across the country.
The newly announced funding aligns with the government's goal to increase business investment in advanced manufacturing by 2035.
DRIVE35 will capitalise on past achievements with the Automotive Transformation Fund (ATF) and the Advanced Propulsion Centre UK (APC) R&D competitions, which have previously utilised more than £6bn of private sector investment and generated various jobs.
The Department for Business and Trade (DBT) has earmarked over £300m for certain automotive manufacturing companies and projects, including more than £100m of capital investment for the nation’s automotive manufacturing through the ATF.
DBT, in collaboration with APC UK and Innovate UK, will deliver the programme.
The DRIVE35 programme is said to stimulate economic growth and significantly minimise CO2 emissions.
Business and Trade secretary Jonathan Reynolds said: “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.”
