Dozens of cutting-edge, green vehicle technology projects including ultra-lightweight vehicles, zero emission buses, and new battery technology are set to benefit from £88 million of funding designed to help the UK hit ambitious net zero targets.

Sarah Jones, minister for industry and decarbonisation, will visit Surrey today to announce the joint funding from industry and government for 46 projects. These initiatives include the development of electric trucks for the NHS and Royal Mail, e-motorcycles, and wireless charging solutions.

It is hoped that the funding initiative will create thousands of green, skilled jobs in the UK automotive industry across the country.

Funding has been awarded through the government-backed Advanced Propulsion Centre, aiming to attract further private investment for developing zero-emission technologies in the automotive sector. The government has contributed £44.5 million, with an additional £43.5 million coming from the automotive industry.

Among the projects set to benefit are Protean Electric, which will develop EV technology, and Gordon Murray Group, set to deliver ultra-lightweight, low CO2 solutions for future vehicles, which combined are estimated to save nearly 13 million tonnes of CO2, while safeguarding and creating nearly 1,000 jobs. 

The successful projects span five competitions and cover a range of initiatives. These include eight R&D projects, seven Automotive Transformation Fund (ATF) feasibility studies focused on battery and motor technologies, and 11 projects aimed at accelerating the development of automotive products. 

Additionally, 14 micro-businesses, SMEs, and startups specialising in zero-emission technologies have been awarded funding, with six more projects dedicated to exploring zero tailpipe emission vehicle technologies.

“Labour is committed to boosting the jewel in the crown of our manufacturing base – the automotive industry,” said the minister. “Working in partnership with industry this funding 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.”

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A report from the Faraday Institution, published today, predicts that by 2030 the UK will need battery capacity of around 110 GWh per annum, the equivalent of six gigafactories, and that 270,000 UK jobs could be supported by the EV and battery industry by 2040.

According to the government, over £20 billion of private sector investment commitments were made in the UK automotive sector in 2023, with plans to continue working with private investors to make progress on building a globally competitive electric vehicle supply chain in the UK, including unlocking investment for more gigafactories.