UK backs £47m push to scale next-generation vehicle technology

Fahad Redha

August 17, 2026
3 min read

UK backs £47m push to scale next-generation vehicle technology

The UK government is putting more than £47 million into 33 automotive projects as it seeks to move new vehicle technologies from research and development towards commercial production.

The funding, awarded through the £4 billion DRIVE35 programme, is intended to strengthen the country’s position in the transition to zero-emission vehicles while supporting manufacturers and suppliers working on the next generation of automotive technology.

The latest awards cover projects with a combined value of more than £90 million, meaning private-sector investment is providing substantial additional funding alongside government support.

For the UK automotive industry, the emphasis is not limited to finished electric vehicles. The projects include work on batteries, electrification, advanced manufacturing and digital technologies, areas that could shape future electric cars and commercial vehicles.

The money is being distributed across four parts of DRIVE35, reflecting different stages of technology development.

Sixteen start-ups, university spinouts and small and medium-sized businesses will share more than £2.7 million through the Mobilise programme. The scheme is designed to help promising technologies progress beyond the early development stage.

Two collaborative research and development projects will receive more than £8 million, while 10 Demonstrate projects will receive a combined £9 million to test technologies under real-world conditions.

The largest share is being directed towards scaling production. Five projects will receive £26.9 million through the Scale-up Fund, aimed at helping technologies move from development into manufacturing at commercial volumes.

DRIVE35 is delivered by the Department for Business and Trade alongside the Advanced Propulsion Centre UK and Innovate UK. The programme sits within the government’s wider Advanced Manufacturing Sector Plan and Industrial Strategy.

The investment comes as the UK continues to debate how quickly the automotive sector should move away from petrol and diesel vehicles. The government has been reviewing the future of the UK’s zero-emission vehicle targets, while manufacturers have also responded to the wider review of the planned end of new petrol and diesel car sales.

For London and the wider UK, the significance extends beyond car production. Technologies developed through programmes such as DRIVE35 could influence the electric vans, fleet vehicles and other zero-emission transport used across cities in the coming years.

Industry Minister Blair McDougall said the government wants the next generation of vehicles to be designed and built in Britain, maintaining a domestic manufacturing base as the industry changes.

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About Author

Fahad Redha

Fahad is the Content Editor at EyeOnLondon, overseeing the publication’s editorial output across news, culture, and lifestyle. With a background in journalism from the University of the Creative Arts, he brings a broad range of experience from local London reporting in Kensington & Chelsea, where he held roles including motoring, events, and health editor. At EyeOnLondon, Fahad plays a central role in shaping content and maintaining editorial standards. His work spans everything from daily news to feature coverage, with a particular strength in motoring and events. He also incorporates photography into his reporting, adding a visual layer to many of his stories. Fahad joined EyeOnLondon in February 2021.