UK Government funds 33 automotive projects via Drive35

The UK Government has committed over £47m to 33 automotive projects through its £4bn Drive35 programme. Administered by the Department for Business, Innovation, Science and Trade (BIST) alongside the Advanced Propulsion Centre UK (APC) and Innovate UK, the initiative targets next-generation vehicle technology development and commercialisation. Drive35 operates within the government's Advanced Manufacturing Sector Plan and Industrial Strategy, backing the shift toward zero-emission vehicles through support ranging from early innovation work to manufacturing scale-up.

This round of funding is projected to draw in over £90m in combined project investment, blending state grants with co-investment from private companies. The projects span electrification, battery technology, advanced manufacturing, digitalisation, circular economy approaches, and zero-emission mobility. The funding allocation was split across Drive35's four funding streams. The Mobilise stream directed over £2.7m toward 16 early-stage start-ups, university spinouts, and SMEs. Two collaborative R&D projects received more than £8m through the Collaborate stream, while the Demonstrate stream allocated £9m across 10 projects. The Scale-up Fund accounted for the largest share, with five projects receiving £26.9m.

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UK Industry Minister Blair McDougall stated:

"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."

Blair McDougall, UK Industry Minister, via Yahoo Finance

Separately, the government announced funding for the Connected and Automated Mobility (CAM) Pathfinder programme, which backs the rollout of Connected and Automated Mobility technologies nationwide. BIST runs this scheme jointly with Zenzic and Innovate UK, aiming to expand the UK's £3.7bn CAM sector. Nine projects have been awarded funding under CAM Pathfinder, covering construction, aviation, highways, and passenger transport. According to the Society of Motor Manufacturers and Traders (SMMT), CAM has the potential to add £66bn annually to the UK economy by 2040. Construction has been flagged as a key area set to benefit alongside passenger vehicles, with the sector expected to see £530bn in development activity over the coming decade against a backdrop of an ageing workforce and skills shortages.

This industrial investment coincides with broader systemic funding updates across the research landscape. UK Research and Innovation (UKRI) published a new five-year strategy seeking to boost research and innovation, investing £9 billion of public money to advance knowledge, improve lives, and drive growth. Almost half of this budget backs discovery and curiosity-driven research, while the other half focuses on high-growth sectors. Advanced manufacturing receives £1.3 billion covering automotive, batteries, aerospace, space, materials, agritech, robotics, automation, additive manufacturing, and digital infrastructure. Additional priority programmes include artificial intelligence, quantum technologies, engineering biology, clean energy, life sciences, creative industries, and professional and financial services.

To help companies start, scale, and stay in the UK, UKRI will provide an innovation service to identify high-potential companies early and support them continuously from discovery through to commercialisation.

What happens next depends on the execution of these intersecting frameworks and milestone deliveries. Drive35 projects will proceed with their commercialisation objectives, while UKRI rolls out its new innovation service and the Clean Flexibility Roadmap establishes its governance framework across delivery partners.