£89 million in funding has been allocated to 20 cutting-edge net-zero technology projects in the UK, including hydrogen-powered all-terrain vehicles, a new lithium expansion plant, and innovative new battery systems for electric vehicles.
This reinforces the United Kingdom’s position as a global leader in zero-emission vehicle technology.
The historic funding package includes four collaborative R&D projects, five expansion projects to assess the readiness of automotive sector companies to grow, and seven feasibility studies to prepare projects for developing large-scale manufacturing facilities.
The funding has been granted through the UK Advanced Propulsion Centre (APC) in support of ambitions to build an end-to-end supply chain for zero-emission vehicles (ZEVs).
£45.2 million of this investment comes from the government, supported by an additional £42.7 million from the automotive industry.
The Minister for Industry and Economic Security, Nusrat Ghani, stated: “Alongside industry, we are providing significant funding of £89 million to drive 20 innovative net-zero technology projects that will help grow the economy and create jobs in the UK’s future industries.”
“From zero-emission luxury cars to cutting-edge battery projects, we are taking decisive action to support UK innovators and ensure we remain at the forefront of zero-emission vehicle technology,” she added.
From luxury cars to load-carrying excavators, the latest collaborative R&D support through APC (valued at over £67 million) will accelerate the development of zero-emission technology, safeguarding and creating jobs and supporting cutting-edge R&D investment.
Winners of the latest collaborative R&D funding competition include Aston Martin, which is accelerating the development of a luxury battery electric vehicle platform, and Perkins, which will develop a zero-emission, net-zero hydrogen hybrid integrated power system for off-road vehicles.
It is estimated that these projects will create or safeguard over 4,700 jobs in total and save nearly 65 million tonnes of CO2 emissions over the next decade as a result of the work carried out by these four R&D projects alone.
APC CEO Ian Constance remarked, “This latest funding round coincides with APC’s 10th anniversary. We have seen over £1.4 billion of investment in automotive projects since APC was established, and I am proud of the impact we have had here in the UK.”
He added, “This latest announcement includes a diverse range of OEMs and suppliers, demonstrating the strength of the UK automotive industry. They will further add to our portfolio of innovative projects and continue to drive the UK towards its net-zero ambition.”
Additionally, £11.3 million has been awarded to 12 UK-based projects funded through the second round of the Scale-up Readiness Validation (SuRV) competition and the fourth round of the Automotive Transformation Fund’s (ATF) feasibility studies competition.
The ATF’s Scale-up Readiness Validation (SuRV) projects will support expansion projects to assess whether UK automotive supply chain companies are ready for growth and expansion.
Projects include Green Lithium, planning to build a lithium expansion plant in Teesside, and Ilika Technologies, working to accelerate the scale-up of Ilika’s solid-state battery technology.
ATF feasibility studies will produce ready-to-decide business cases in preparation for projects that will develop large-scale manufacturing facilities in the UK.
The seven projects include Cornish Lithium, establishing a lithium processing plant in the UK to produce anode material for electric vehicle batteries, and Aberdeen Minerals Limited for the study of innovative mineral processing routes.
Support provided through APC is unlocking further private investment and supports the government’s ambitions to build an end-to-end supply chain for zero-emission vehicles in the UK.
This announcement complements the 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.
ATF is overseen by the Department for Business and Trade in partnership with APC.
