Ministers commit £2.5bn to futureproof UK auto industry through DRIVE35

The UK Government has launched DRIVE35, a £2.5bn funding programme aimed at supporting the transition to zero-emission vehicle manufacturing and securing the future of the British automotive sector.

The initiative includes new and enhanced funding competitions covering transformation, scale-up, and innovation projects across the industry.

Announced as part of the Advanced Manufacturing Sector Plan under the UK’s modern Industrial Strategy, DRIVE35 comprises £2bn of capital investment through to 2030 and a further £500m in R&D funding available until 2035.

The programme will support companies of all sizes – from start-ups and SMEs to global manufacturers – working across the automotive supply chain.

Business and Trade Secretary Jonathan Reynolds said: “We’re helping British carmakers get to the front of the pack by working hand in hand with investors to build a globally competitive electric vehicle supply chain in the UK as we deliver our Plan for Change.

“We’re taking action to back the industry for the future with the biggest set of announcements for the sector in the last decade.”

The Government also confirmed over £300m of funding for specific auto sector projects. This includes more than £100m in capital through the Automotive Transformation Fund (ATF), approximately £140m in joint Government and industry R&D support, and £18m through the Connected & Automated Mobility (CAM) Pathfinder programme.

Among the beneficiaries, Astemo Ltd. will invest over £100m in EV component production in Bolton, supporting more than 220 high-value jobs.