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News & Press: February 2025

Advanced Propulsion Centre UK: £40 million funding available for automotive technology businesses

03 February 2025  

£40 million funding available for automotive technology businesses

UK-registered businesses can apply for government match–funding for late-stage, automotive collaborative research and development (CR&D) projects that support the UK’s transition towards zero–emission vehicles by growing supply chain capability and manufacturing.

This competition is delivered in partnership with the Department for Business and Trade and Innovate UK, part of UK Research and Innovation, and we will be investing up to £40 million in innovative zero-emission projects.

Project Criteria

Your project must:

  • Contribute to the UK’s strategic vision for a zero-emission future as illustrated in the Automotive Council’s Roadmaps
  • Support the UK supply chain’s future growth and underpin core capabilities by securing long-term R&D investment
  • Create or safeguard high-value jobs during the project or through any post-project R&D and manufacturing activities
  • Achieve, through the associated supply chain, the design, build, test, and manufacture of zero-emission vehicles
  • Support the UK’s transition to zero-emission vehicles and a pathway to a net-zero automotive industry

Your project must fulfil these criteria to ensure the UK’s automotive industry meets the future demands of vehicle makers and users. The outcomes will strengthen the UK’s global impact and anchor added value across the whole supply chain.

Project focus

Individual projects can claim a minimum of 50% government matched funding between £2.5 million and £20 million (any award is subject to Ministerial and His Majesty’s Treasury approval). You must be working with a consortium of UK-registered organisations, including at least one SME, with a clear route to market for your product at the end of the project.

Your project must advance technologies in one or more of the following areas:

  • Energy storage, batteries, their components, management and integration systems
  • Fuel cell and associated balance of plant
  • Electric machines
  • Power electronics
  • On-road internal combustion which aims to achieve zero harmful tailpipe emissions utilising non-fossil fuels.
  • Off-road internal combustion that supports a transition to zero emissions utilising non-fossil fuels.
  • Hydrogen storage and management systems
  • Design for circular economy, including the disassembly, recovery, and reuse of materials used in the project technologies
  • Digitalisation for vehicle development and design

We are at the start of an industry-wide digital transformation journey, and our goal is to position the UK as a recognised global leader in this arena.

To find out more click here.