Advanced Propulsion Centre UK (APC) has announced a new wave of government-backed projects under the DRIVE35 programme, unlocking more than £470 million in funding to support the UK automotive sector’s transition to zero-emission mobility.
A significant portion of the funding—around £380 million—has been allocated to Agratas, part of the Tata Group and parent company of Jaguar Land Rover. Agratas focuses on advanced battery technology, combining research, engineering and sustainable design to deliver high-performance energy solutions for electrified vehicles.
The investment is delivered through the Department for Business and Trade via the Automotive Transformation Fund (ATF), with facilitation from the APC. It marks a major step forward in strengthening the UK’s electric vehicle (EV) supply chain and supporting large-scale battery production.
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.”
The DRIVE35 programme is delivered by the Department for Business and Trade in partnership with the APC and Innovate UK. It is designed to stimulate innovation, scale-up and industrial transformation across the automotive sector by combining government grants with private sector investment.
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.”
Alongside the Agratas investment, an additional £90.5 million in government funding has been awarded across four DRIVE35 competition streams: Collaborate, Demonstrate, Scale-up Fund and Scale-up Feasibility Studies. These initiatives aim to boost domestic manufacturing, strengthen sovereign supply chains and expand industrial capability across the UK.
Ian Constance, CEO of the 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.”
The Automotive Transformation Fund plays a central role in enabling the industrialisation of zero-emission vehicle technologies. Its purpose is to attract private investment, safeguard and create highly skilled jobs, and ensure the UK remains competitive in global EV manufacturing by supporting the development of new and upgraded production facilities.
Image: APC
Within the Collaborate stream, more than £84 million is being invested in consortia involving leading UK automotive manufacturers such as Jaguar Land Rover, Nissan, Maeving and ELM Mobility. Meanwhile, Hypromag is leading a project focused on recycling magnets for electric motors. Successful applicant details can be found here.
The Demonstrate competition is supporting 18 projects with a combined value of more than £29 million, including over £14 million in government grants. These projects aim to rapidly advance technologies such as next-generation battery systems, powertrains, lightweight vehicle design and the recycling of critical materials. Successful applicant details can be found here.
Scale-up Feasibility Studies are helping businesses assess the commercial viability of manufacturing projects at pilot and industrial scale. Areas of focus include battery material production, EV power electronics, transport refrigeration, aluminium recycling, lithium extraction and advanced braking systems. Successful applicant details can be found here.
The Scale-up Fund addresses one of the most challenging stages in innovation, often referred to as the “Valley of Death”, where promising technologies require significant investment to move from validation to full-scale production. This support is designed to bridge that gap and accelerate commercial deployment. Successful applicant details can be found here.
Overall, the DRIVE35 programme aims to establish a strong UK-based manufacturing ecosystem for zero-emission vehicles while leveraging the country’s reputation in high-growth domestic and export markets.
With substantial backing from government and industry, the latest funding round highlights the UK’s ambition to lead the global transition to clean transport, while building a resilient and future-ready automotive supply chain.
Contact APC for details about DRIVE35 and the funding opportunities open to a wide range of UK-based automotive organisations.
Grant funding is provided by the UK Government.
