£130 million for cutting-edge next generation vehicles securing over 1,800 jobs
The UK government is investing nearly £130 million to advance zero-emission vehicle technologies, supporting over 1,800 jobs and strengthening the automotive sector’s supply chain.
The government will allocate almost £130 million to accelerate the development of zero-emission vehicle technologies, with nearly £65 million in public funding matched by industry contributions. This investment aims to support over 1,800 high-value manufacturing jobs across the UK, aligning with the Prime Minister’s goal of fostering economic growth in all regions. The funding will target projects ranging from self-driving vehicles to more affordable electric cars, delivered through the Modern Industrial Strategy. The government states this initiative will help secure skilled employment and reinforce the UK’s position in advanced manufacturing.
The investment is part of the DRIVE35 programme, which has committed £4 billion by 2035 to accelerate the electrification of the automotive industry. Nearly £50 million in government grants will assist businesses in scaling up production of zero-emission technologies, reducing costs for consumers. The programme builds on prior DRIVE35 funding of £100 million already distributed to supply chain businesses in the North East and West Midlands, key regions for automotive manufacturing. The government highlights that this funding will support flagship companies such as Turntide Technologies and Bentley in developing next-generation vehicles.
An additional £17 million will fund nine successful projects under the Connected and Automated Mobility (CAM) Pathfinder initiative, aimed at advancing self-driving and transport technologies. The government notes that the CAM industry is projected to create tens of thousands of jobs and contribute £66 billion to the economy by 2040, according to the Society of Motor Manufacturers and Traders (SMMT). These projects will focus on innovation, testing, and scaling new transport solutions, reinforcing the UK’s global leadership in this sector.
The total £130 million investment combines public and private funds to bolster the UK’s advanced manufacturing capabilities. The government states that these projects will strengthen the country’s ability to design, develop, and manufacture future vehicle technologies. By fostering collaboration between industry, government, and academia, the funding aims to enhance long-term growth, investor confidence, and the UK’s competitive position in automotive innovation.