UK Government announces £130m boost in automotive tech development

August 11, 2026

The UK automotive industry is set to receive almost £130 million of investment as the Government backs companies developing the next generation of electric vehicles.

The funding, delivered through the DRIVE35 programme, includes almost £65 million from the Government, matched by industry. As a result, more than 1,800 jobs are expected to be supported.

Several major automotive names are among the beneficiaries including Nissan, which, alongside the University of Warwick's Warwick Manufacturing group, is developing an autonomous mobility service for cities through the ADVenture project.

The funding also reaches electric motor manufacturer, YASA, which is developing an electric motor without the use of rare earth materials. It also includes Bentley, which is working with battery manufacturer, Ionetic to localise battery pack and cell production in the UK.

JLR also part of it, being involved in the AutoLoom project. It's led by Q5D Technologies alongside Artifex Interior Systems and the University of Warwick. It aims to automate the production of vehicle wiring looms by implementing computer-aided designs (CAD).

For fleets, these investments offer a glimpse of the technology likely to shape future vehicles - utilising improved battery tech and localisation of production. Support from the UK government for its automotive industry has potential to shape the landscape of the car market in the years to come - especially with the growing popularity of electrified vehicles.

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