UK awards £65m for zero-emission vehicle technologies
The UK government has awarded almost £65 million to automotive technology projects as it begins allocating funding under its DRIVE35 programme. The latest awards target the development, commercialisation and manufacturing of zero-emission vehicle technologies as well as connected and automated mobility.
The funding will support projects ranging from EV batteries and electric motors to power electronics and recycling. Industry will match the government contribution, bringing total investment to nearly £130 million and supporting more than 1,800 jobs.
Nearly £50 million of government funding will go towards projects designed to bring zero-emission vehicle technologies towards commercial production. Recipients range from carmaker Bentley and electric motor manufacturer YASA to companies specialising in batteries, power electronics and recycling.
Funding targets batteries, motors and power electronics
The largest share of the funding announced for zero-emission technologies, £26.9 million, will go to five companies through DRIVE35’s Scale Up fund. Turntide Technologies, EMPEL Systems, Cornish Lithium, Strip Tinning and Watercycle Technologies will receive support to move their technologies towards commercial production.
Another £8 million has been allocated to two collaborative projects involving industry and academia. One brings together Bentley and battery startup Ionetic to localise battery cell and pack production for future vehicles. The other is led by Q5D Technologies and involves JLR, Artifex Interior Systems and the University of Warwick. Their AutoLoom project aims to industrialise automated production of vehicle wiring looms.
The government is providing a further £9 million to ten projects at an earlier stage of development. Among them, electric motor manufacturer YASA will demonstrate a motor that does not use rare-earth materials. Green Tech Industries plans to develop what it describes as the UK’s first automated EV battery disassembly plant, while semiconductor manufacturer Nexperia will develop a new transistor architecture designed to improve the efficiency of EV electrical systems. Eatron Technologies, meanwhile, is working on a 48-volt battery management system using next-generation Infineon chips.
Smaller companies are also included in the latest funding round. Through the Mobilise programme, 16 SMEs, startups and spinouts will share £2.7 million for projects covering areas including material recycling, electric motor technology, cybersecurity and connectivity.
Beyond zero-emission vehicle technologies, the government is putting £17 million into nine projects under its Connected and Automated Mobility (CAM) Pathfinder programme. Nissan and the University of Warwick’s Warwick Manufacturing Group are among the participants, with their ADventure project focusing on an autonomous mobility service for cities. Other funded projects cover brake-by-wire technology for Level 4 automated vehicles, autonomous airport vehicles and automated road maintenance equipment.
“Britain invented the modern motor industry and we’re determined to ensure the next generation of vehicles are designed and built here too,” said Industry Minister Blair McDougall. “This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain.”
DRIVE35 provides long-term support through 2035
The awards form part of DRIVE35, which the British government unveiled in July 2025 as a long-term programme to support the transition to zero-emission vehicle manufacturing. As previously reported, the programme was initially presented with £2 billion in funding through 2030 plus £500 million for automotive research and development through 2035. The government now describes DRIVE35 as a £4 billion programme running to 2035.
The funding is awarded by the Department for Business, Innovation, Science and Trade through the Advanced Propulsion Centre UK in partnership with Innovate UK. DRIVE35 is intended to support vehicle production, battery manufacturing, automotive technology companies and domestic supply chains as the UK automotive industry transitions towards zero-emission vehicles.