Government announces £86m investment in clean automotive technology

Wed 18 September 2024 View all news

A multi-million pound package of investment in clean automotive technology has been announced by the Advanced Propulsion Centre (APC) and the Department for Business and Trade (DBT).

Successful applicants of the latest APC-facilitated funding opportunities will enable the development of innovative zero emission vehicle technologies.

The awards - a combined total of £85.8 million of investment, with both industry and government contributing, were announced by Sarah Jones MP, Minister for Industry and Decarbonisation.

The investments aim to support the UK’s manufacturing sector, boost British business, and accelerate the industry’s transition to net zero.

Sarah Jones MP said:  “Labour is committed to boosting the jewel in the crown of our manufacturing base – the automotive industry. Working in partnership with industry this fund 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.”

Ian Constance, CEO of the Advanced Propulsion Centre, said:  “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.”

The investments include:

Collaborative Research and Development programme

Eight leading UK-based automotive companies and the government have invested a combined total of £59.9 million, with £29.6 million of grant provided by the Department for Business and Trade and delivered through the APC.

The technologies under development aim to raise economic growth and are projected to create or safeguard over 3,500 green jobs and reduce CO2 in the manufacturing and usage of zero-emission vehicles.

JLR, Ford and Cummins are among the successful lead applicants of the latest cohort of collaborative research and development projects.

More details here

Advanced Route to Market Demonstrator competition (ARMD3)

Also announced today were the companies sharing an £18.3 million investment in 11 fast-start projects aimed at rapidly developing automotive products with a clear route to market.

This includes £9.1 million of support from the Department for Business and Trade, delivered through the APC, and matched by industry funding.

Projects of the third round of the Advanced Route to Market Demonstrator competition (ARMD3) have 12 months to demonstrate a product, system, or vehicle.

These include; the development of electric trucks for the NHS and Royal Mail, electrically cooled, last-mile delivery vans for Sainsbury’s, e-motorcycles, fire engines, buses, next-generation powertrains, and material recycling.

More details here

Automotive Transformation Fund Feasibility Studies:

Seven new Feasibility Studies are also launched looking into battery technologies and supply chain, with a total investment of £4.6 million, including £2.3 million of government grant through the Automotive Transformation Fund (ATF).

The ATF was created to accelerate the electrification of Britain’s automotive sector and protect its competitiveness in the global market. It enables the delivery of feasibility studies to investigate the viability of projects for scale-up and offers capital grants to help de-risk and unlock further private investment. 

More details here

Technology Developer Accelerator Programme (TDAP)

14 companies in the UK’s innovative automotive sector have been awarded a share of over £2.3 million in government grant funding.

Each organisation will receive up to £170,000 in grant funding with tailored business support delivered through the Technology Developer Accelerator Programme (TDAP).

This is the eighth wave of this award-winning accelerator programme, with companies in previous cohorts having gone on to raise over £300 million in private investment.

The latest TDAP entrants include projects to improve battery performance, battery recycling, advanced manufacturing materials, and wireless-charging solutions.

More details here


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