LONDON (dpa-AFX) - The UK Government has announced the launch of DRIVE35, comprising new and improved funding competitions that will support UK businesses. The program will fund a wide spectrum of projects which help the transition to zero-emission vehicle manufacturing. It targets established high-volume manufacturing and multi-billion-pound gigafactories, as well as start-ups, prototypes and cutting-edge automotive innovation.
The new program was announced in the Advanced Manufacturing Sector Plan, part of the UK's modern Industrial Strategy. It will commit 2 billion pounds in funding to 2030 alongside an additional 500 million pound for research and development to 2035, signalling a ten-year commitment to UK automotive innovation.
The cash will provide certainty to the sector, give innovators the confidence to invest in the UK and will support the latest in research and development, unlocking capital investment in zero emission vehicles, batteries and their supply chains.?
The automotive sector contributed 21.4 billion pounds in GVA to the economy in 2024 and currently employs 132,000 people across all parts of the UK - including many highly-skilled, highly-paid roles, and apprenticeships. The transition to zero emissions is the biggest opportunity of the 21st century to attract investment, harness British innovation, and deliver growth for generations to come.
The UK was also the largest EV market in Europe in 2024 and the third in the world with over 382,000 EVs sold - up a fifth on the previous year. There are now more than 82,000 public chargepoints in the UK.
Business and Trade Secretary Jonathan Reynolds said, 'We're helping British carmakers get to the front of the pack by working hand in hand with investors to build a globally competitive electric vehicle supply chain in the UK as we deliver our Plan for Change.
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