£89m funding package announced to develop EV technology

An £89m funding pot has been awarded to 20 net zero tech projects which will look at developing new electric vehicle technology.

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,  £45.2m has come from government backed by a further £42.7m from the automotive industry.

The 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.

Minister for Industry and Economic Security Nusrat Ghani said: “Together with industry, we’re providing a huge £89m 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.”

Winners of the latest collaborative R&D competition funding include Aston Martin, which is accelerating the development of a luxury battery electric vehicle platform and Perkins, which 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 £1.4bn 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.”

Some £11.3m 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 which plans to build a lithium scale-up plant on Teesside and Ilika Technologies which is 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 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 are winners of the Niche Vehicle Network (NVN) Production Readiness Competition, sponsored by the APC and supported by Innovate UK, which provides grant funding to UK SMEs leading the way in sustainable, cutting-edge technology design.

A total of £1.1m 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.