The UK government has announced a bold £2.5 billion investment in electric vehicle manufacturing aimed at transforming the UK’s automotive industry and solidifying the UK’s leadership in zero-emissions mobility.
The core of this plan is the launch of Drive35, a 10-year program that supports innovation, infrastructure and job creation across the sector.
This comprehensive investment package aims to prevent the UK’s automotive industry in the future by accelerating the transition to electric vehicles (EVs).
Commenting on Jonathan Reynolds, Secretary of Investment, Business and Trade at Landmark. “We are helping British automakers to work with investors to build a globally competitive electric vehicle supply chain in the UK to reach the front of the pack.
“We are taking action to support the industry for the future with the largest set of announcements in the sector in the last decade.
“This includes ensuring a groundbreaking trade agreement with the US to reduce tariffs on British automakers, addressing our modern industrial strategy, taking measures to lower electricity prices, updating ZEV missions, and ensuring that UK manufacturers protect jobs and secure the future of the sector.
Introducing Drive35: 10 years of innovation
Announcing as part of the Advanced Manufacturing Sector Plan, Drive35 will have £2 billion by 2030 on electric vehicle manufacturing and infrastructure, and will be £500 million for research and development only by 2035.
Building on the success of previous schemes such as the Automotive Transformation Fund (ATF) and Advanced Propulsion Center (APC), Drive35 expands reach and scale previous initiatives.
These previous programs have leveraged over £6 billion in private sector investments and helped create thousands of jobs across the UK.
Drive35 streamlines support into three key pillars:
Transformation: Supporting capital investments in facilities and technologies for the manufacture of zero-emission vehicles. Scale-up feasibility: Funding strategic research to grow early-stage projects into large-scale operations. Innovation Competition: Support early and late R&D to maintain the UK at the cutting edge of EV technology.
Ian Constance, CEO of Advanced Promotion Centre UK and Zenzic, added:
“We are pleased to see APC, Zenzic and its distribution partners foster new waves of funding in the automotive industry, supporting innovation, fostering scale-ups and enabling transformation.
“We have announced a project that will receive four grants to boost UK leadership in automobile manufacturing. They will enable rapid development of protesters featuring cutting-edge technology, accelerate ambitious SMEs and support critical joint R&D innovations.
“This will encourage further investment based on the UK’s expanded zero-emission supply chain, protecting skilled jobs and the country’s reputation as a global leader in technology.”
Sector-wide impact: From prototypes to EV production lines
Drive35 is designed to benefit auto companies of all sizes, from global OEMs to ambitious UK startups. Successful applicants will receive targeted funds to expand the project, secure employment and reduce emissions.
The government has confirmed that the first competition set under Drive35 will soon open, offering opportunities for capital investment, feasibility planning and R&D collaboration.
Additionally, the Ministry of Business has announced £300 million in new investments supporting specific companies and innovation. The highlights are:
It generates over £100 million and over 220 high value jobs from Astemo Ltd. for the production of EV components in Bolton. £15 million from Dana at West Midlands supports over 100 skilled roles and manufactures EVESTENT EV parts. £18 million from the new £150 million Connected & Automated Mobility (CAM) Pathfinder program.
These investments aim to create tens of thousands of jobs, lift billions of dollars of private investment, and support the production of millions of zero-emission vehicles.
EV infrastructure boosts £63 million
To charge UK EV charging networks, the government has announced a £603 million investment aimed at making EV ownership more affordable and accessible.
The £25 million scheme for local governments will help households without driveways install affordable home charging via innovative cross-pavement cable technology. This saves families up to £1,500 a year compared to the cost of gasoline and diesel.
The initiative will complement £6 billion with local EV infrastructure funds and private sector commitments, which are expected to provide an additional 100,000 charge points by 2030.
Greening of the NHS: £8 million for electrifying ambulances
In a groundbreaking move in public services, the NHS will receive £8 million to support electrification of its vehicle fleet. Over 1,200 charging sockets will be installed on 200 NHS sites, saving you a lot of fuel and maintenance.
This initiative not only supports environmental goals, but also helps bring millions of cost-saving back to patient care, supporting the NHS’ broader sustainability and efficiency ambitions.
Better signs and business support
New road signs will be unfolded to mark the hubs of A-Roads for the first time to make it easier for EV drivers to access the growing network.
Since 2023, the number of major charging hubs has more than doubled, with clearer signs expected to make long-distance EV journeys more convenient.
In parallel, the government is launching new grant schemes to help businesses install depot-based charging for vans, coaches and HGVs and support a wider commercial transition to zero emissions.
Future prevention of the UK’s auto industry
With the automotive sector contributed to £21.4 billion total value added (GVA) and employing more than 132,000 people in 2024, Drive35 represents a transformational opportunity.
The long-term support of the UK government aims to position the country as a global hub for electric vehicle manufacturing, innovation and export.
By combining public funds and private investments, promoting cutting-edge research and development, and expanding critical infrastructure, the UK is poised to lead the world to a zero-emission future in the race.
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