The UK Government has committed over £47m ($63.4m) to 33 automotive projects through its £4bn Drive35 programme, targeting next-generation vehicle technology development and commercialisation.
The Department for Business, Innovation, Science and Trade (BIST) is administering the funding alongside the Advanced Propulsion Centre UK (APC) and Innovate UK.
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Drive35 sits within the government’s Advanced Manufacturing Sector Plan and Industrial Strategy, backing the shift toward zero-emission vehicles through support ranging from early innovation work to manufacturing scale-up.
This round of funding is projected to draw in over £90m in combined project investment, spanning electrification, battery technology, advanced manufacturing, digitalisation, circular economy approaches and zero-emission mobility, blending state grants with co-investment from private companies.
The allocation was split across Drive35’s four funding streams.
The Mobilise stream directed over £2.7m toward 16 early-stage start-ups, university spinouts and SMEs.
Two collaborative R&D projects received more than £8m through the Collaborate stream, while the Demonstrate stream allocated £9m across 10 projects.
The Scale-up Fund accounted for the largest share, with five projects receiving £26.9m.
UK 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.”
Separately, the government also announced funding for the CAM Pathfinder programme, which backs the rollout of Connected and Automated Mobility (CAM) technologies nationwide.
BIST runs this scheme jointly with Zenzic and Innovate UK, with a goal of expanding the UK’s £3.7bn CAM sector.
Nine projects have been awarded funding under CAM Pathfinder, covering construction, aviation, highways and passenger transport.
According to the Society of Motor Manufacturers and Traders (SMMT), CAM has the potential to add £66bn annually to the UK economy by 2040.
Construction has been flagged as a key area set to benefit alongside passenger vehicles, with the sector expected to see £530bn in development activity over the coming decade, against a backdrop of an ageing workforce and skills shortages.
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