£89 million of funding to develop cutting edge new electric vehicle technology

£89 million of funding has been awarded to 20 cutting edge net zero tech projects including hydrogen-powered offroad vehicles, a new lithium scale-up plant and revolutionary new EV battery systems, reinforcing the UK as a world leader in zero emissions vehicle technology.

The landmark funding package includes four collaborative R&D projects, five scale-up projects to assess if businesses in the automotive sector are ready for growth, and seven feasibility studies to prepare projects to develop large-scale manufacturing facilities in the UK.

The funding has been awarded through the Advanced Propulsion Centre UK (APC), in support of ambitions to build an end-to-end supply chain for zero emission vehicles (ZEVs) in the UK. £45.2 million of this investment comes from Government, backed by a further £42.7 million from the automotive industry.

Minister for Industry and Economic Security Nusrat Ghani said:

Together with industry, we’re providing a huge £89 million of funding to drive 20 groundbreaking net zero tech projects which will help grow the economy and create UK jobs in the industries of the future.

From net zero tractors to cutting-edge battery projects, we’re taking decisive action to back the UK’s innovators and ensure we remain at the forefront of zero emission vehicle technology.

From luxury cars to workhorse excavators, the latest in collaborative R&D support via the APC – worth over £67 million – will accelerate the development of zero emission technology in the UK, safeguarding and creating jobs and supporting investment in cutting edge R&D.

Winners of the latest collaborative R&D competition funding include Aston Martin, who are accelerating the development of a luxury battery electric vehicle platform and Perkins, who will develop a net-zero, hydrogen-hybrid integrated power system for offroad vehicles.

The projects are estimated to create or safeguard more than 4,700 jobs in total and save nearly 65 million tonnes of CO2 being emitted over the next decade as a result of the work undertaken by these four R&D projects alone.

APC Chief Executive Ian Constance said:

This latest round of funding coincides with the APC’s 10th anniversary. We have seen over £1.4 billion of investment into automotive projects since the APC was set up, and I am proud of the impact that we have made here in the UK.

This latest announcement includes a diverse set of OEMs and suppliers that demonstrate the strength of UK automotive. They will further add to our portfolio of innovative projects and continue to drive the UK to deliver on its net zero ambition.

£11.3 million has also been awarded to 12 UK-based projects funded through the second instalment of the SuRV (Scale-up Readiness Validation) competition and the fourth round of the APC’s Automotive Transformation Fund (ATF) feasibility studies competition.

The ATF’s Scale-up Readiness Validation (SuRV) projects will support scale-up projects to assess if businesses in the UK automotive supply chain are ready for growth and expansion.

Projects include Green Lithium who plan to build a lithium scale-up plant in Teesside, and Ilika Technologies who are working to accelerate the scale-up of Ilika’s solid state battery technology.

The ATF Feasibility Studies will produce decision-ready business cases, in preparation for projects which will develop large-scale manufacturing facilities in the UK.

The seven projects include Cornish Lithium, who are establishing a graphite processing plant in the UK to produce anode material for EV batteries, and Aberdeen Minerals Limited for the study of innovative mineral processing routes.

The support delivered through the APC is unlocking further private investment and supports the government’s ambitions to build an end-to-end supply chain for zero-emissions vehicles in the UK.

Today’s announcement comes on top of funding also being invested by the Government through the Automotive Transformation Fund (ATF) to develop a high-value end-to-end electrified automotive supply chain in the UK.

This includes unlocking private investment in gigafactories, battery material supply chains, motors, power electronics, and fuel cell systems. The ATF is being delivered by the Department for Business and Trade in partnership with the APC.

Also announced today are the winners of the Niche Vehicle Network (NVN) Production Readiness Competition, sponsored by the APC and supported by Innovate UK, provides grant funding to UK SMEs leading the way in sustainable, cutting-edge technology design.

A total of £1.1 million in grant funding has been awarded to four projects, including a zero emission Ariel Nomad – a low volume performance offroad vehicle – featuring a highly optimised EV powertrain, and also a UK-made electric scooter from Swifty Scooters, which is optimised for superior rider safety and ensures a long product lifespan.

After engagement with industry, DBT is building on programmes like the Advanced Propulsion Centre and taking decisive action to ensure future investment in zero emission vehicle manufacturing.