UK, 13 July 2025: The UK government has launched DRIVE35, a landmark £2.5 billion programme designed to future-proof the British automotive industry and accelerate the transition to zero-emission vehicles. The initiative forms a key part of the UK’s modern Industrial Strategy and represents the largest commitment to the automotive sector in over a decade.
The programme includes £2 billion in capital investment available through 2030, alongside £500 million dedicated to research and development (R&D) through 2035. It will support a wide range of initiatives from large-scale manufacturing and gigafactories to start-ups and advanced prototyping, focusing on technologies such as EV batteries, lightweighting, energy storage, and power electronics.
As part of the DRIVE35 initiative, the UK government has earmarked over £300 million for key automotive projects that will strengthen the nation’s EV manufacturing capabilities. Among the major commitments, Astemo Ltd. is investing more than £100 million in its Bolton facility to produce advanced electric inverters, a move expected to generate over 220 high-value jobs and stimulate hundreds more across the wider supply chain. In the West Midlands, Dana is channelling £15 million into expanding its EV component production, supporting the creation of more than 100 skilled roles in the region.
In an official press release by the government of the UK, Mike Hawes, SMMT Chief Executive, stated, “The creation of this dedicated automotive programme is further evidence of the sector’s importance to economic growth. Delivered as part of the Industrial Strategy, DRIVE35 has the potential to unlock investment and innovation in the UK, supporting jobs and creating wealth across the country. The importance of a long-term, cross-government strategy with specific measures for the automotive cannot be understated, given the challenges facing the sector amid geopolitical uncertainty and fierce global competition. DRIVE35 and the wider measures identified in the Industrial Strategy must now be implemented at pace to ensure the UK is amongst the leaders in next-generation automotive technologies.”
In addition, £140 million in joint government and industry funding has been allocated to support over 50 R&D projects, with major players such as Mercedes and Jaguar Land Rover among the recipients. These projects aim to advance the UK's capabilities in zero-emission vehicle technologies and create a pipeline of scalable, investment-ready innovations.
DRIVE35 is built on three strategic pillars aimed at accelerating the UK's transition to zero-emission vehicle manufacturing. These include: Transformation, which backs capital investment through an enhanced Automotive Transformation Fund; Scale-Up Feasibility Studies, designed to help businesses assess and prepare for expansion; and Innovation Competitions, which offer research and development support across both emerging and mature technologies. The programme is being delivered collaboratively by the Department for Business and Trade, APC UK, Innovate UK, and Zenzic.
Contributing £21.4 billion in GVA in 2024 and supporting over 132,000 jobs, the UK automotive sector is a cornerstone of the national economy, and DRIVE35 represents a vital move to strengthen its global competitiveness in the era of zero-emission mobility. The UK led Europe’s EV market last year with 382,000 electric vehicles sold and now has a network of over 82,000 public chargepoints growing at the pace of one new installation every 30 minutes.
DRIVE35 is more than just a funding programme; it’s a national commitment to clean growth, industrial innovation, and job creation. By backing British manufacturers and innovators, the government aims to make the UK a global hub for EV technology, supply chain resilience, and green automotive leadership.
