Investment Boost for Electric Vans and Buses

  • New industry and government funding announced to boost zero emission vehicle tech, creating jobs and helping deliver long-term economic growth.

  • Over 40 cutting edge projects across five competitions include next generation battery-electric bus and developing electric trucks for the Royal Mail and NHS.
  • Minister for Industry and Decarbonisation Sarah Jones will visit two successful projects to reiterate the government's support for the auto industry and net zero transition.

Dozens of cutting-edge, green vehicle technology projects including ultra-lightweight vehicles, zero emission buses and new battery technology are set to benefit from £88 million of joint funding to take the UK a step closer to net zero.

Today [Tuesday 17 September], Minister for Industry and Decarbonisation Sarah Jones will visit Surrey to announce that £88 million of joint industry and government funding has been awarded to 46 innovative projects, including the development of electric trucks for the NHS and Royal Mail, e-motorcycles and wireless charging solutions.

This funding is an important vote of confidence in the UK's automotive industry, creating thousands of green, skilled jobs up and down the country as the government continues to deliver its mission to get Britain moving and grow the economy for all.

The Minister will visit two successful applicants in the government-supported Advanced Propulsion Centre UK's (APC) Collaborative R&D competition, Protean Electric and Gordon Murray Group.

Protean Electric is working to bring to market new, UK-developed, power-electronics products and Gordon Murray Group is developing an ultra-lightweight vehicle platform for future vehicles. These are key technologies that underpin the UK's transition to future zero emission vehicles.

Total investment in their projects is £22.5 million, including a government grant of £11 million. Both projects combined are estimated to save nearly 13 million tonnes of CO2, while safeguarding and creating nearly 1,000 jobs.

Minister for Industry and Decarbonisation Sarah Jones said:

Labour is committed to boosting the jewel in the crown of our manufacturing base - the automotive industry. Working in partnership with industry this funding will drive innovation and propel the development of next generation zero emission vehicle technologies.

From Royal Mail trucks delivering our post, to cleaner, greener bus journeys, this funding will back projects that will lower emissions across the country, while also supporting skilled jobs.

Andrew Whitehead, Chief Executive Officer of Protean Electric, said:

We are thrilled that project PULSE has been selected by the APC and the new Government, as it supports Protean to continue to lead electric vehicle innovation from our UK development centre. Protean's state-of-the-art in-wheel motors are a key solution to improve range, user experience and most importantly affordability of electric vehicles.

We are delighted to welcome Minister Jones and would like to thank her for the new Government's continued commitment towards net-zero, and look forward to engaging further on these topics in the future."

Jean-Philippe Launberg, Gordon Murray Group Strategy & Business Director, said:

The Gordon Murray Group and our R&D partners feel privileged to receive - through Innovate UK and APC - Government support for the M-LightEn Project and be trusted with the development and industrialisation of leading-edge technologies to make cars significantly more energy efficient to build and run, contributing to the UK's decarbonisation. Furthermore, the extra lightweighting we will unlock through M-LightEn directly enhances the already legendary dynamics of our cars. It's Driving Perfection … taken to the next level.

This joint industry and government funding has been awarded through the APC, helping to unlock further private investment into developing cutting edge zero emission technologies for the automotive sector. £44.5 million of this investment has been provided by government and is backed by a further £43.5 million from the automotive industry.

Other successful projects, across five competitions, include eight collaborative R&D projects, seven Automotive Transformation Fund (ATF) Feasibility Studies looking into battery and motor technologies, 11 projects aiming to rapidly develop automotive products, 14 micro-businesses, SMEs and start-ups specialising in zero emission technologies which tackle transport decarbonisation and 6 projects exploring zero tailpipe emission vehicle technologies within the niche vehicle sector.

Ian Constance, Chief Executive Officer APC, said:

Congratulations to all the companies awarded funding in this latest round of competitions facilitated by the Department for Business and Trade and industry via the APC. From collaborative projects to further advance the UK's excellence in automotive production, to fast-start demonstrators delivering cutting-edge technology in a short period of time, through to our award-winning SME programme, it's important we continue to show that the automotive sector is vital to the country's net-zero goals and future economic growth, further evidencing that the UK is a highly investable opportunity

A report from the Faraday Institution (FI) published today predicts that by 2030, the UK will need battery capacity of around 110 GWh per annum, the equivalent of six gigafactories. Recent gigafactory announcements in the UK by AESC and Tata Group have built excitement about the potential to create a new, dynamic and highly skilled battery industry in the UK.

The FI predicts that 270,000 UK jobs could be supported by the EV and battery industry to 2040. The UK's ambitious approach to the zero emission vehicle transition resulted in over £20bn of private sector investment commitments in the UK automotive sector in 2023 and this sector will play a key role in supporting long-term growth.

The government continues to work with investors through the ATF to progress plans to build a globally competitive electric vehicle supply chain in the UK, and this includes unlocking private investment in gigafactories.

This government's mission is to create a strong, stable and pro-business economy, with the UK remaining an attractive destination for investment for the automotive industry.

Our new industrial strategy and International Investment Summit will deliver long-term, sustainable, inclusive growth right across the UK by driving investment into our economy and will play a key role to maintain the highest sustained growth in the G7.

Notes:

The difference in government and industry funding is due to a higher intervention rate in the grant funding for the SMEs supported through the TDAP programme.

APC Collaborative R&D (APC25) projects led by:

The latest in R&D collaborative support via the APC R&D competitions - worth £60 million - aims to raise economic growth, projected to create or safeguard over 3,500 green jobs, and reduce CO2 in the manufacturing and usage of zero-emission vehicles.

Sarginsons Industries: Revolutionising the global aluminium casting industry with faster development of lighter and more sustainable cast solutions.

Microchip Technology Caldicot: Developing high-efficiency power modules for next-generation inverter systems and addressing key gaps in the UK's power electronics supply chain.

JLR: Developing a growing UK supply-chain, enabling high-volume application of lightweight and circular composite technologies for the automotive industry.

Ford Motor Company: Focusing on the development, pilot, and industrialisation of e-sheet, stamping, and lamination.

Protean Electric: Delivering revolutionary EV technologies combined with new UK manufacturing capabilities for power-electronics products.

European Metal Recycling: Transforming the UK aluminium supply chain through the creation of up-to 100% post-consumer scrap recycled extrusions for use in the automotive industry.

Gordon Murray Group: Developing a production-ready, ultra-lightweight, low CO2, monocoque architecture and solutions for a portfolio of class-leading future vehicles.

Cummins: Developing a digital analysis tool to enable the design of highly reliable and durable components used in hydrogen-fuelled powertrains.

Advanced Route to Market Demonstrator (ARMD3) projects:

£9.1 million of government grant funding has also been awarded to 11 fast-track projects funded through APC's third Advanced Route to Market Demonstrator competition (ARMD3), which aims to rapidly develop automotive products with a clear route to market.

Metier Technologies: Developing innovative subsystems for onboard hydrogen fuel systems, accelerating zero-emission vehicle adoption with reduced cost, improved reliability and quality.

Altilium Metals: Delivering a carbon reduction technology in BEVs, through production and validation of battery cells containing materials recovered from battery waste.

Ram Innovations: Demonstrating highly efficient power electronics systems and sub-systems utilising GaN (gallium nitride) devices with improved efficiency and enhanced thermal performance.

Equipmake: Creating a novel 'daisy chain' energy management system to enable firefighting with fully battery-electric fire engines.

Botanic Energy: Replacing diesel-driven refrigeration with energy-efficient thermoelectric systems, for Sainsburys to offer last-mile delivery with zero-emission refrigerated vehicles.

MAGTEC: Prototyping next-generation drivelines for electric trucks to be trialled by NHS Wales and Royal Mail.

Renewable Metals UK: Recovering critical materials from battery waste, cutting costs and boosting sustainability with novel alkali-based hydrometallurgy.

Intelligent Energy: Building a 200kW+ regulated voltage output fuel-cell system designed for heavy-duty vehicles.

Triumph Motorcycles: Establishing a second-generation Triumph electric motorcycle software platform and supply chain to offer riders a distinctive feel, style & character.

Zircotec: Developing and testing ceramic coatings for lightweight battery enclosures to improve thermal and electrical insulation for both vehicle safety and efficiency.

Wrightbus (Bamford Bus Company): Delivering an innovative, next-generation, lightweight and energy-efficient battery-electric bus demonstrator, showcasing UK engineering talent on a world-wide scale.

Technology Developer Accelerator Programme (TDAP) projects:

The Technology Developer Accelerator Programme (TDAP) has awarded over £2.3 million in government grant funding to 14 companies specialising in zero-emission technologies which tackle transport decarbonisation.

Battery Minerals: Battery Minerals' mission is to help deliver a circular battery supply chain by improving the economics of mineral extraction for battery waste.

DeepForm: DeepForm Ltd is introducing a novel, patented, sheet metal pressing technology that can significantly reduce the high levels of waste in automotive pressings, reducing cost and CO2 emissions.

Electric Green: Electric Green Limited is developing smart wireless charging solutions which allow electric vehicles to charge without plugging in a cable.

Enough Energy: Enough Energy aims to support the shift to renewables through developing innovative energy storage solutions, leveraging the best and latest technologies available.

FLIT: FLIT develops lightweight folding e-bikes for urban commuters with a mission to build e-bikes that are so useful that even people who don't ride bikes will want one.

Generational Technologies: Generational is an innovative software company that provides battery assessments and performance monitoring for electric vehicles.

IONETIC: IONETIC is a battery pack technology company, developing a one-stop solution, empowering all OEMs to create excellent electric vehicles, with the correct economics and performance.

Molyon: Molyon, is developing its patented cathode solution which enables next generation high energy density batteries. Molyon's efforts in lithium-sulfur batteries have shown twice the energy density of lithium-ion batteries on the market, all whilst using more sustainable and low-cost materials.

NiTech Solutions: NiTech Solutions is a UK based business aiming to be at the forefront in transforming the chemical processing industry through developing advanced manufacturing solutions for chemical production in the 21st Century.

Polaron: Polaron is accelerating the design of advanced materials with generative AI.

Raeon: Raeon is aiming to disrupt the custom battery market by offering a 10x reduction in development cost and lead time for application-optimised, 'any shape' batteries.

TaiSan: TaiSan is developing novel quasi-solid-state sodium batteries with proprietary IP in electrolyte and anode materials to reach high energy density.

Tribol Braking: Tribol Braking brings revolutionary, patented approaches to manufacturing high performance composite braking components for the automotive sector that are lighter, and last longer. Tribol has developed a full-Composite-Brake-Pad (CBP) using polymer composites, such as carbon fibre, in place of steel in automotive brake pads.

TUAL Technology: TUAL is an innovator in electric commercial vehicle charging solutions, working with enterprise customers across Europe to deliver technology that transforms productivity, profitability and utilisation.

Automotive Transformation Fund Feasibility Study (FS5) projects:

Seven projects will also receive a government investment of £2.3 million through the fifth round of Automotive Transformation Fund (ATF) Feasibility Studies with the aim to electrify Britain's automotive sector and protect its competitiveness in the global market.

Anaphite: The study will produce an investment case for the commercialisation and scale up of Anaphite's innovative dry coating precursor technology. Dry coating of battery electrodes is less energy intensive than traditional wet coatings and more efficient.

Imerys British Lithium Limited (IBL): Validation of commercial opportunities for large-scale lithium production in the UK, using IBL's highly sustainable, novel method of extracting high-purity lithium from micaceous granite.

Talga Anode: UK-RELOAD aims to validate the case to establish an innovative lithium-ion battery anode manufacturing plant in the UK designed to support the circular economy by extracting and repurposing recycled graphite from used batteries and battery-production scrap to use in new battery production.

Altilium: The validation and commercialisation of a new UK greenfield site capable of processing 90,000 tpa of end-of-life EV lithium-ion batteries, gigafactory scrap and electronic waste, enabling 30,000 tpa of cathode active materials to be recovered and supplied back into the EV battery industry by 2028.

Nyobolt: Validation of high-volume production for Nyobolt's proprietary anode material. Establishing this capacity in the UK would represent a key piece of the UK's automotive battery supply chain and enable the commercialisation of Nyobolt's ultra-fast-charging battery technology, capable of reducing vehicle charging from hours to minutes.

FluoRok: Development of a detailed business plan to support future investment in a new UK-based manufacturing unit for LiPF6, a key material in the Li-ion battery chemical supply chain.

Electrified Automation: Project EARTH (Electrified Automated motor Range in Traction & Hydraulic systems) aims to expand existing product offerings to ensure compatibility with a range of EDU components. The successful project will enable continued growth in the off-highway market and see substantial investment into UK manufacturing facilities.

Niche Vehicle Network (NVN) projects:

The Niche Vehicle Network (NVN) has also awarded over £1 million in government grant funding to 6 UK SMEs and their suppliers to bring innovative technologies from demonstration through to production readiness in a compressed timescale.

Muon Tech Ltd: Muon Tech is bringing to market the VXM-35, an integrated electric drive and vehicle control unit, which is designed to fit tight packaging volumes with high levels of functional safety, reliability and functionality.

Carbon Threesixty Ltd: The Hi-DEN Gen2 project will develop the design, manufacturing, integration and testing of a conformable hydrogen storage solution to meet the growing demand of Fuel Cell Electric Vehicles (FCEVs) and help the UK reach its net zero targets by 2050.

Bomobility Ltd: The Boped Proof of Concept seeks to create a fully functional demonstrator vehicle for a new and innovative omni-category lightweight e-motorcycle, aiming to enable the niche production of highly optimised vehicles for specific use-cases.

Raeon: Raeon's proprietary resin encapsulation technology aims to reduce the cost and lead time of custom battery development by 10x, making bespoke high-performance custom battery solutions accessible for the most commercially sensitive applications.

Quattro Plant Ltd: Quattro Plant is leading developers in the field of up-cycled off-highway vehicles converting internal combustion engine machines to battery powertrains.

FR 8 Technology Ltd: This project will produce a static demonstrator 16 tonne rigid delivery vehicle with a low floor, providing direct access for unloading from the truck to the footpath.

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