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More than £47 million in government funding has been awarded to 33 automotive projects, the Department for Business, Innovation, Science and Trade (BIST) and the Advanced Propulsion Centre UK (APC) announced on Monday.
The awards are made under the government’s £4 billion DRIVE35 programme, delivered by BIST in partnership with the APC and Innovate UK, which supports the development and commercialisation of zero-emission vehicle technologies.
According to the announcement, the latest allocation will leverage more than £90 million of total project investment, combining government grants with private sector co-investment. The projects span electrification, battery innovation, advanced manufacturing, digitalisation, circular economy solutions and zero-emission mobility.
The funding is spread across four DRIVE35 streams. Under Mobilise, which backs early-stage start-ups, university spinouts and SMEs, sixteen businesses were awarded more than £2.7 million. Two collaborative R&D projects received more than £8 million through Collaborate, ten projects were awarded £9 million through Demonstrate for real-world testing of technologies, and five projects received £26.9 million from the Scale-up Fund, which helps businesses move from innovation to manufacturing at scale.
Industry Minister Blair McDougall said: “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.”
DRIVE35, launched in July 2025, forms part of the government’s Advanced Manufacturing Sector Plan and Modern Industrial Strategy, and supports businesses from early-stage innovation through to commercialisation and manufacturing scale-up.
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 the DRIVE35 awards, the government confirmed the latest projects to receive support through the CAM Pathfinder programme, which is accelerating the deployment of connected and automated mobility technologies across the UK. Together, the two programmes cover technologies from zero-emission powertrains and manufacturing through to connected and automated vehicle deployment.
The announcement comes as UK vehicle production fell 7.5 per cent to 385,979 units in the first half of 2026, according to the Society of Motor Manufacturers and Traders, which has urged rapid implementation of the Industrial Strategy.
