£130 million for cutting-edge next generation vehicles securing over 1,800 jobs
Britain's automotive sector will benefit from almost £130 million of investment to ramp up new zero emission technologies, government has announced today.
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Investment will support over 1,800 high-value manufacturing jobs, delivering on the Prime Minister’s mission for good growth in every postcode.
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Almost £65m of government funding, matched by industry, will drive cutting-edge zero-emission projects, from self-driving cars to more affordable EVs.
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Modern Industrial Strategy is bringing business and science together to drive British innovation, boost reindustrialisation and cement the UK’s leading role in advanced manufacturing.
Britain’s automotive sector is set to benefit from nearly £130 million of investment to ramp up cutting-edge new zero emission vehicle technologies and support skilled jobs nationwide as the government focuses on delivering good growth in every postcode.
Delivered through the UK’s Modern Industrial Strategy, the funding will support over 1,800 jobs - and thousands more in the supply chain - across the UK, helping to put more money in people’s pockets and ensure Britain is better off.
Auto firms and key R&D partners have been awarded nearly £50 million in government funding that will help businesses build and produce the zero-emission vehicle technologies of the future at scale - helping to drive economic growth while simultaneously making EVs cheaper for consumers.
This latest funding is delivered through the DRIVE35 programme - the biggest government investment into the UK’s car industry of the post-war era, with £4 billion to 2035 speeding up the electrification of the automotive industry. This builds on the Government’s mission to reindustrialise every part of the UK, back British innovation and ensure companies are able to succeed and scale here at home.
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.
From Gateshead to Crewe, the Government is doubling down on its commitment to delivering growth in every region. With the North East and West Midlands serving as the UK’s powerhouse regions for automotive manufacturing, this funding will provide vital support to flagship companies such as Turntide Technologies and Bentley - helping to ensure the next generation of vehicles are designed, developed and built here in the UK.
This follows £100 million worth of DRIVE35 grant funding already being delivered to supply chain businesses in both of these regions, preparing them for the electric vehicle transition.
With the connected and automated mobility (CAM) industry expected to create tens of thousands of high-quality jobs and contribute around £66 billion to the economy by 2040, according to SMMT.
The Government is injecting £17 million into a further nine successful CAM Pathfinder projects, paving the way for innovators to develop, test and scale cutting-edge transport technologies - reinforcing the UK’s position as a global leader in this growing industry.
Altogether this industry-matched funding totals nearly £130 million, showcasing the best of British innovation on the global stage and bolstering the UK’s advanced manufacturing sector.
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.
Background:
- DRIVE35 is built to anchor future vehicle production, scale up battery manufacturing, grow the UK’s most innovative tech companies and onshore the supply chain capabilities that make British automotive genuinely resilient.
- It is designed to directly support over 50,000 direct jobs plus tens of thousands more in the supply chain, cut millions of tonnes of CO2 emissions and unlock billions in private investment by 2035.
- The funding award from the Department for Business, Innovation, Science and Trade is facilitated via the Advanced Propulsion Centre UK (APC) in partnership with Innovate UK.
- The 2026/27 CAM Pathfinder Programme will fund nine new projects that show the breadth of the UK’s connected and automated mobility sector, from enabling technologies such as sensors, brake-by-wire systems and AI simulation to real-world deployment in public transport, passenger mobility, construction, airport operations and highways maintenance.
- Together, the projects will help build UK supply chain capability and move commercially scalable, safe automated mobility services closer to use across the economy.
- The APC collaborates with UK Government, the automotive industry, and academia to facilitate driving research and investment in zero-emission vehicle manufacturing. Established in 2013 and jointly funded by the DBIST and the automotive industry, the APC accelerates the technologies that support the transition to zero-emission vehicle manufacturing.
Statistics sources
- CAM industry jobs and economy contribution: Connected and automated mobility revolution set to deliver £66 billion prize by 2040 - SMMT
Project winners of the DRIVE35 R&D competitions are as follows:
Scale up fund: R&D funding to fast-track the commercialisation of innovative zero-emission vehicle technologies, supporting the growth, transition, and resilience of the UK’s automotive supply chain.
- Avid - Turntide Technologies
- EMPEL Systems.
- Cornish Lithium.
- Strip Tinning Limited.
- Watercycle Technologies Limited.
Collaborate: Grants fund projects where companies, and academic institutions, form a consortium to take a product or process to commercial readiness. Please note, these are the lead partners only – there are several partners in each consortium.
- Q5D Technologies Limited.
- Bentley Motors Limited.
Demonstrate: Grants are for companies that are earlier in their product or process development or need a short, sharp sprint to get where they want to be. Please note that these are the lead partners.
- Deepform Limited.
- YASA Limited.
- Thermulon Limited.
- Anaphite Limited.
- Hyster-Yale Limited.
- Nexperia UK Limited.
- Watercycle Technologies Limited.
- Eatron Technologies Limited.
- Electra Commercial Vehicles Limited.
- Green Tech Industries Limited.
Project winners of CAM Pathfinder programme: Supporting companies in R&D and the supply chain development of self-driving vehicles, commercial services, and enabling technologies. Please note, these are the lead partners only – there are several partners in each consortium.
- Gravis Robotics Limited.
- Cambridge County Council.
- Alcon Advanced Technologies.
- Five AI (Bosch Mobility).
- Aurrigo.
- Oxford RF.
- Calyo.
- Nissan Motor Manufacturing UK.
- Ringway Infrastructure Services.
Project winners of Mobilise programme: This is targeted at UK-based SMEs, start-ups, and spinouts focused on developing zero-emission automotive and Connected & Automated Mobility (CAM) technologies, products, and services.
- Loop52 Limited.
- Cooled Motors Limited.
- Xerode.
- AIRS ML Limited.
- Aftrak Limited.
- Electric Aviation Group Limited.
- Ocrea Energy Limited.
- Secure Elements Limited.
- Green Tech Industries Limited.
- Decimo Limited.
- Aeramine Limited.
- Cybpass Limited.
- Radareye Limited.
- Moonbility Limited.
- Arc Vehicle Limited.
- Satraka Limited.