Issued by: Department for Business and Trade

The government has announced £88 million of funding has been awarded to 46 innovative projects that will help boost zero emission vehicle tech.

- New industry and government funding announced to boost zero emission vehicle tech, creating jobs and helping deliver long-term economic growth.

- Over 40 cutting edge projects across five competitions include next generation battery-electric bus and developing electric trucks for the Royal Mail and NHS.

- Minister for Industry and Decarbonisation Sarah Jones will visit two successful projects to reiterate the government’s support for the auto industry and net zero transition.

Dozens of cutting-edge, green vehicle technology projects including ultra-lightweight vehicles, zero emission buses and new battery technology are set to benefit from £88 million of joint funding to take the UK a step closer to net zero.

Today [Tuesday 17 September], Minister for Industry and Decarbonisation Sarah Jones will visit Surrey to announce that £88 million of joint industry and government funding has been awarded to 46 innovative projects, including the development of electric trucks for the NHS and Royal Mail, e-motorcycles and wireless charging solutions.

This funding is an important vote of confidence in the UK’s automotive industry, creating thousands of green, skilled jobs up and down the country as the government continues to deliver its mission to get Britain moving and grow the economy for all.

The Minister will visit two successful applicants in the government-supported Advanced Propulsion Centre UK’s (APC) Collaborative R&D competition, Protean Electric and Gordon Murray Group.

Protean Electric is working to bring to market new, UK-developed, power-electronics products and Gordon Murray Group is developing an ultra-lightweight vehicle platform for future vehicles. These are key technologies that underpin the UK’s transition to future zero emission vehicles.

Total investment in their projects is £22.5 million, including a government grant of £11 million. Both projects combined are estimated to save nearly 13 million tonnes of CO2, while safeguarding and creating nearly 1,000 jobs.

Minister for Industry and Decarbonisation Sarah Jones said:

"Labour is committed to boosting the jewel in the crown of our manufacturing base – the automotive industry. Working in partnership with industry this funding will drive innovation and propel the development of next generation zero emission vehicle technologies.

"From Royal Mail trucks delivering our post, to cleaner, greener bus journeys, this funding will back projects that will lower emissions across the country, while also supporting skilled jobs."

Andrew Whitehead, Chief Executive Officer of Protean Electric, said:

"We are thrilled that project PULSE has been selected by the APC and the new Government, as it supports Protean to continue to lead electric vehicle innovation from our UK development centre. Protean’s state-of-the-art in-wheel motors are a key solution to improve range, user experience and most importantly affordability of electric vehicles."

We are delighted to welcome Minister Jones and would like to thank her for the new Government’s continued commitment towards net-zero, and look forward to engaging further on these topics in the future.”

Jean-Philippe Launberg, Gordon Murray Group Strategy & Business Director, said:

"The Gordon Murray Group and our R&D partners feel privileged to receive – through Innovate UK and APC – Government support for the M-LightEn Project and be trusted with the development and industrialisation of leading-edge technologies to make cars significantly more energy efficient to build and run, contributing to the UK’s decarbonisation. Furthermore, the extra lightweighting we will unlock through M-LightEn directly enhances the already legendary dynamics of our cars. It’s Driving Perfection … taken to the next level."

This joint industry and government funding has been awarded through the APC, helping to unlock further private investment into developing cutting edge zero emission technologies for the automotive sector. £44.5 million of this investment has been provided by government and is backed by a further £43.5 million from the automotive industry.

Other successful projects, across five competitions, include eight collaborative R&D projects, seven Automotive Transformation Fund (ATF) Feasibility Studies looking into battery and motor technologies, 11 projects aiming to rapidly develop automotive products, 14 micro-businesses, SMEs and start-ups specialising in zero emission technologies which tackle transport decarbonisation and 6 projects exploring zero tailpipe emission vehicle technologies within the niche vehicle sector.

Ian Constance, Chief Executive Officer APC, said:

"Congratulations to all the companies awarded funding in this latest round of competitions facilitated by the Department for Business and Trade and industry via the APC. From collaborative projects to further advance the UK’s excellence in automotive production, to fast-start demonstrators delivering cutting-edge technology in a short period of time, through to our award-winning SME programme, it’s important we continue to show that the automotive sector is vital to the country’s net-zero goals and future economic growth, further evidencing that the UK is a highly investable opportunity."

A report from the Faraday Institution (FI) published today predicts that by 2030, the UK will need battery capacity of around 110 GWh per annum, the equivalent of six gigafactories. Recent gigafactory announcements in the UK by AESC and Tata Group have built excitement about the potential to create a new, dynamic and highly skilled battery industry in the UK.

The FI predicts that 270,000 UK jobs could be supported by the EV and battery industry to 2040. The UK’s ambitious approach to the zero emission vehicle transition resulted in over £20bn of private sector investment commitments in the UK automotive sector in 2023 and this sector will play a key role in supporting long-term growth.

The government continues to work with investors through the ATF to progress plans to build a globally competitive electric vehicle supply chain in the UK, and this includes unlocking private investment in gigafactories.

This government’s mission is to create a strong, stable and pro-business economy, with the UK remaining an attractive destination for investment for the automotive industry.

Our new industrial strategy and International Investment Summit will deliver long-term, sustainable, inclusive growth right across the UK by driving investment into our economy and will play a key role to maintain the highest sustained growth in the G7.

Notes to Editors:

The difference in government and industry funding is due to a higher intervention rate in the grant funding for the SMEs supported through the TDAP programme.

For further information on projects click here: (https://www.gov.uk/government/news/boost-for-electric-vans-and-buses-backed-with-investment-to-drive-innovation?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=bbf4c69b-69ee-424c-8605-ffe6a3c73b39&utm_content=immediately)

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