The Advanced Propulsion Centre UK (APC) has announced a package of more than £470 million in grants to support the UK automotive industry.
The funding from the Department for Transport’s Automotive Transformation Fund DRIVE35 includes around £380m for Agratas, part of the Tata Group and parent company of JLR. Agratas combines research, engineering, and sustainable design to deliver battery solutions.
Delivered by the Department for Business and Trade in partnership with the APC and Innovate UK, the DRIVE35 programme supports innovation, scale-up, and industrial transformation within the automotive sector.
Grant awards are paired with private industry investment and will accelerate the development of next-generation zero-emission vehicle technologies and supply chains across the UK.
Other government grant awards unveiled today span four DRIVE35 competition streams and together represent £90.5 million in government funding. These include the Collaborate, Demonstrate, Scale-up Fund, and Scale-up Feasibility Studies schemes.
Collaborate provides match-funded grants supporting the design, development, and delivery of strategic zero-emission vehicle technologies. Combining both government and industry funding, a total of more than £84 million is being invested through consortia that involve vehicle manufacturers in the UK – including JLR, ELM Mobility, Maeving, and Nissan – and Hypromag leading a group recycling magnets for electric motors.
The Demonstrate competition aims to accelerate R&D programmes by building a product or process demonstrator in under 12 months. Eighteen projects are underway, totalling more than £29 million, including over £14 million in government grants.
Scale-up Feasibility Studies includes advancements in battery material production, EV power electronics, transport refrigeration, cold chain solutions, aluminium recycling, cathode manufacturing, lithium extraction, and next-generation brake systems. In addition, the Scale-Up Fund is designed to bridge the gap between innovation and transformation to ensure an already successfully validated business plan becomes a reality.
Julian Hetherington, Automotive Transformation Director at the APC, said:
“This globally significant investment by Agratas reinforces the UK’s accelerating position in pursuit of road transport decarbonisation through the production of vital high-performance batteries for electrified vehicles.”
“I’m delighted that the ATF has been able to support Agratas in their investment in new facilities, creating secure and highly skilled jobs in this area and across the supply chain.”
Minister for Industry Chris McDonald said:
“Our Modern Industrial Strategy is central to this government’s growth mission, and by funding our automotive sector, we are creating the right conditions for increased investment, economic growth, and jobs across the country.
“I want to congratulate all the winners on their success as we continue to support key projects that bring the latest R&D for cutting-edge technologies, accelerate commercial scale-up, and attract investment in zero-emission vehicles, batteries, and their supply chains.”
Ian Constance, CEO, APC, said:
“The projects announced today demonstrate the UK’s determination to lead the shift to zero-emission mobility. By facilitating the UK Government’s DRIVE35 grants, we are turning world-class innovation into industrial capability. With our partners in DBT and Innovate UK, we are backing manufacturers, empowering SMEs, and strengthening the UK’s sovereign supply chain.
“This multi-million-pound support package is more than an investment in technology; it is an investment in the people, skills, and companies that will define the future of clean transport. Together, we are building the foundations of a competitive, resilient, and sustainable automotive industry.”
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