The Government has injected £47.2m into the UK automotive sector to accelerate the development of next-generation, zero-emission technologies.

The funding will be spread across 33 pioneering projects, which will support the development and commercialisation of next-generation automotive technologies while strengthening UK manufacturing, innovation and supply chains.

The initiative is a core component of the Government’s £4bn Drive35 programme, a long-term scheme delivered by the Department for Business, Innovation, Science and Trade (BIST) in partnership with the Advanced Propulsion Centre UK (APC) and Innovate UK.

By combining public grants with private co-investment, this latest funding round is set to leverage a total project investment exceeding £90m. The cash injection will target critical fields necessary to end the sale of fossil-fuel vehicles. Key focus areas include cutting-edge battery chemistry innovation, rapid vehicle electrification, factory digitalisation, and circular economy solutions aimed at recycling rare automotive materials.

The Drive35 programme sits at the heart of the UK’s Advanced Manufacturing Sector Plan and broader Industrial Strategy. It is designed to support automotive businesses at every stage of development, from early-stage laboratory innovation to full-scale commercial manufacturing.

The successful projects span multiple Drive35 funding streams, demonstrating how the programme supports businesses at every stage of the innovation journey.

These include the Mobilise stream, backing early-stage start-ups, university spinouts and SMEs supporting breakthrough automotive innovation. Sixteen businesses will share over £2.7m to prove breakthrough concepts.

The Collaborate stream will enable collaborative R&D projects to accelerate innovation. Two major R&D projects have been awarded a combined total of over £8m to accelerate technology readiness.

The Demonstrate Stream is focused on real-world vehicle demonstrations, allowing companies to test and validate advanced prototypes in live environments. Ten projects have secured £9m.

Finally, the Scale-Up Fund will help businesses bridge the gap between innovation and manufacturing at scale. Five projects have been awarded £26.9m.

Government officials said the funding will achieve several critical economic and environmental goals.

Industry Minister Blair McDougall commented: “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.

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.”

Alongside today’s Drive35 announcement, the Government has also confirmed the latest projects to receive support through the CAM Pathfinder programme, which is accelerating the deployment of Connected and Automated Mobility (CAM) technologies across the UK.

The two schemes demonstrate the breadth of the UK’s investment in automotive innovation, supporting technologies from zero-emission powertrains and manufacturing through to connected and automated vehicle deployment.