The UK government has recently launched the DRIVE35 programme, a £2.5bn initiative aimed at driving the nation’s automotive sector towards the future of zero-emission vehicle development. This programme, part of the country’s “modern Industrial Strategy”, will provide £2bn in funding until 2030, with an additional £500m allocated for research and development (R&D) activities through to 2035.
The primary goal of DRIVE35 is to support innovators in investing in the UK, facilitating R&D efforts, and unlocking capital for the development of zero-emission vehicles and their related supply chains. This funding will be distributed through a series of competitions designed to assist UK businesses in transitioning to the manufacturing of zero-emission vehicles, ranging from large-scale gigafactories to start-ups and innovative automotive companies.
In 2024, the automotive sector contributed £21.4bn in gross value added (GVA) to the UK economy and employed 132,000 individuals across the country. The DRIVE35 programme aligns with the government’s objective to increase business investment in advanced manufacturing by 2035.
Building upon the success of previous initiatives such as the Automotive Transformation Fund (ATF) and the Advanced Propulsion Centre UK (APC) R&D competitions, which have attracted over £6bn in private sector investment and created numerous jobs, DRIVE35 aims to capitalize on these achievements.
The Department for Business and Trade (DBT) has allocated over £300m for specific automotive manufacturing companies and projects, including more than £100m for capital investment in the nation’s automotive manufacturing through the ATF. The programme will be delivered in collaboration with APC UK and Innovate UK.
DRIVE35 is expected to stimulate economic growth and significantly reduce CO2 emissions. Business and Trade Secretary Jonathan Reynolds highlighted the government’s commitment to supporting the automotive industry, emphasizing the importance of securing jobs and driving innovation in the sector.
In conclusion, the DRIVE35 programme represents a significant step towards the advancement of zero-emission vehicle technology in the UK, with the potential to transform the automotive industry and contribute to a more sustainable future.
