£275m funding for automotive and aerospace tech announced

One of the projects with new government funding is led by electric motor manufacturer YASA
One of the projects with new government funding is led by electric motor manufacturer YASA

Ahead of the Spring Budget this week, the chancellor Jeremy Hunt has announced an investment package that features funding for the automotive and aerospace industries.

Alongside funding for the pharmaceutical and aerospace industries, the government has announced almost £73m in combined government and industry investment for cutting-edge automotive R&D projects to support the development of electric vehicle technology.

Supported by more than £36m of government funding awarded through Advanced Propulsion Centre UK (APC) competitions, this includes four projects that are developing technologies for the next generation of battery electric vehicles, making them more efficient and competitive, led by companies including automotive manufacturers YASA and Empel Systems.

This funding is also supporting a project led by Integrals Power, developing and scaling up high-performance battery systems ahead of testing their mass-commercialisation, enhancing safety, power density, and cost-efficiency.

These projects build on the record of the government’s established automotive initiatives. The Autumn Statement provided future certainty, announcing over £2bn across five years from 2025 to unlock investment in the manufacturing and development of zero emission vehicles, their batteries and supply chain.

The government has already spent over £2bn to accelerate the uptake of zero emission vehicles, including reducing the upfront cost of electric vehicles and supporting the roll-out of charging infrastructure. The UK’s first ever Battery Strategy published last year outlines the plan for the UK to attract investment and achieve a globally competitive battery supply chain by 2030, with the battery sector alone expected to create 100,000 highly paid and skilled jobs in the UK.

As part of the investments announced today, almost £200m of joint government and industry funding is also going to aerospace R&D projects, supporting the development of energy efficient and zero-carbon aircraft technology and accelerating the transition to net zero aviation.

This includes £40m which is going towards a project developing zero-carbon aircraft engine technology, led by Cambridge-based Marshall ADG and around £96m is being invested in Airbus-led projects. Airbus, which manufactures its aircraft wings in the UK – is developing more efficient wing designs and increasing carbon fibre production rates for wing components, reducing CO2 emissions and fuel burn.

Funding for these projects will be delivered through the Aerospace Technology Institute (ATI) programme.

Stephen Phipson, chief executive of Make UK, commented: “Industry will welcome this announcement as yet another boost for key sectors that will put advanced manufacturing at the heart of the UK’s economic future. These industries will be key to addressing many of the societal challenges we face in a competitive world and highlight what can be achieved with a constructive dialogue between Government and business. Taken together they are another piece in the jigsaw of a modern industrial strategy to make the UK a world leader in key sectors of the future.”

Make UK


Make UK

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