The government has announced a significant funding boost of £88 million, awarded to 46 innovative projects aimed at advancing zero-emission vehicle technology. This initiative is expected to create jobs and foster long-term economic growth.
Funding for Zero-Emission Technology
The new funding aims to enhance zero-emission vehicle technology, facilitating the creation of green jobs and promoting sustainable economic development. More than 40 innovative projects, spanning five different competitions, will receive backing. This includes the creation of advanced battery-powered buses and electric trucks for the NHS and Royal Mail.
Minister’s Visit to Highlight Commitment
On Tuesday, 17 September, Minister for Industry and Decarbonisation, Sarah Jones, visited Surrey to announce the allocation of £88 million in joint industry and government funding. This funding will support projects involving electric trucks for the NHS and Royal Mail, e-motorcycles, and wireless charging solutions.
A Vote of Confidence in the Automotive Industry
This funding serves as a crucial endorsement of the UK’s automotive sector, generating thousands of skilled green jobs nationwide. The government remains dedicated to its mission of enhancing mobility and stimulating economic growth.
Spotlight on Innovative Projects
During her visit, Minister Jones highlighted two successful applicants from the government-supported Advanced Propulsion Centre UK’s (APC) Collaborative R&D competition: Protean Electric and Gordon Murray Group.
Protean Electric is focused on bringing UK-designed power-electronics products to market, while Gordon Murray Group is developing an ultra-lightweight vehicle platform for future models. These technologies play a vital role in the UK’s transition to zero-emission vehicles.
Investment Details and Environmental Impact
The total investment in these projects is £22.5 million, including an £11 million government grant. Collectively, these projects are projected to save nearly 13 million tonnes of CO2 and create approximately 1,000 jobs.
Minister’s Statement
Minister for Industry and Decarbonisation, Sarah Jones, expressed her commitment to the automotive industry, stating: Labour is focused on supporting the automotive sector, a cornerstone of our manufacturing base. This investment will foster innovation and speed up the advancement of cutting-edge zero-emission vehicle technologies.
From Royal Mail trucks to greener bus services, this funding will support projects that reduce emissions while fostering skilled jobs.”
Industry Leaders’ Reactions
Andrew Whitehead, Chief Executive Officer of Protean Electric, expressed enthusiasm about the funding: We are excited that the APC and government have chosen to back project PULSE. This support allows Protean to continue leading electric vehicle innovation from our UK development centre. Our state-of-the-art in-wheel motors significantly enhance the range, user experience, and affordability of electric vehicles.”
Jean-Philippe Launberg, Strategy & Business Director of Gordon Murray Group, commented: “We feel privileged to receive government support for the M-LightEn Project. This backing allows us to develop and industrialise cutting-edge technologies that will make vehicles more energy-efficient and contribute to the UK’s decarbonisation efforts. The extra lightweighting we’ll achieve through M-LightEn will enhance the renowned dynamics of our cars.”
Unlocking Future Investments
This joint funding initiative has been awarded through the APC, facilitating further private investment in the development of advanced zero-emission technologies for the automotive sector. Of the £88 million investment, £44.5 million is provided by the government, with an additional £43.5 million coming from the automotive industry.
A Broad Spectrum of Successful Projects
Other successful projects span five competitions and include eight collaborative R&D projects, seven Automotive Transformation Fund (ATF) Feasibility Studies focusing on battery and motor technologies, 11 projects aimed at rapid automotive product development, and six projects investigating zero tailpipe emission technologies within niche vehicle sectors.
Acknowledgment from APC
Ian Constance, Chief Executive Officer of APC, congratulated the companies awarded funding: “This latest round of competitions, facilitated by the Department for Business and Trade and industry through the APC, showcases the importance of the automotive sector in achieving the country’s net-zero goals and driving future economic growth.”
Future Projections for the UK Battery Industry
According to a report from the Faraday Institution (FI) published today, the UK will need battery capacity of around 110 GWh per annum by 2030, equivalent to six gigafactories. Recent announcements of gigafactories by AESC and Tata Group have sparked enthusiasm for the potential of a dynamic and skilled battery industry in the UK.
Employment Opportunities in the EV Sector
The FI estimates that the electric vehicle and battery industry could support 270,000 UK jobs by 2040. The UK’s ambitious approach to transitioning to zero-emission vehicles attracted over £20 billion in private sector investment commitments in 2023, underscoring the sector’s key role in supporting long-term growth.
Government Commitment to the Automotive Sector
The government continues to collaborate with investors through the ATF to progress plans for a globally competitive electric vehicle supply chain in the UK, including initiatives to unlock private investment in gigafactories.
The government’s mission is to foster a strong, stable, and pro-business economy, ensuring the UK remains an attractive destination for investment in the automotive sector. The new industrial strategy and International Investment Summit aim to deliver long-term, sustainable, and inclusive growth across the UK, contributing to the highest sustained growth in the G7.
