• Swindon & Wiltshire Manufacturing
• Monday July 14 2025

West auto businesses to share in new government investment scheme

Three West businesses are among those to benefit from a new government investment scheme aimed at the automotive sector.

The £2.5 billion Drive35 programme looks to accelerate electric vehicle research and R&D over the next 10 years.

Businesses attracting support range from start-ups to high-volume manufacturers and multi-billion-pound gigafactories.

The new programme was announced in the Advanced Manufacturing Sector Plan, part of the UK’s modern Industrial Strategy.

It will commit £2 billion in funding to 2030 alongside an additional £500 million for research and development to 2035.

The automotive sector contributed £21.4 billion in GVA to the economy in 2024 and currently employs 132,000 people across all parts of the UK – including many highly-skilled, highly-paid roles, and apprenticeships.

The government says the transition to zero emissions is the biggest opportunity of the 21st century to attract investment, harness British innovation, and deliver growth for generations to come.

The UK was also the largest EV market in Europe in 2024 and the third in the world with over 382,000 EVs sold – up a fifth on the previous year.

There are now more than 82,000 public charging points in the UK – with one added every half an hour – ensuring that motorists are always a short drive from a socket.

Business and Trade Secretary Jonathan Reynolds said: “We’re helping British carmakers get to the front of the pack by working hand in hand with investors to build a globally competitive electric vehicle supply chain in the UK as we deliver our Plan for Change.

“We’re taking action to back the industry for the future with the biggest set of announcements for the sector in the last decade.

“This includes securing a landmark trade deal with the US to bring down tariffs for British car manufacturers, measures in our modern Industrial Strategy to lower electricity prices and updating the ZEV mandate, supporting UK manufacturers to safeguard jobs, and secure the future of the sector.”

“Economic growth is our number one priority, and by funding our world leading auto sector we are creating the right conditions for increased investment, bringing growth, jobs, and opportunities to every part of the UK.”

There are three schemes under the programme –

Mobilise: An SME accelerator programme for zero-emission vehicle-related technology, as well as innovations in connected and automated mobility and automotive software.

Collaborate: Grants fund projects where companies, and academic institutions, form a consortium to take a product or process to commercial readiness. Please note, these are the lead partners only – there are several partners in each consortium.

Demonstrate: Grants are for companies that are earlier in their product or process development or need a short, sharp sprint to get where they want to be.

Bristol-based High Temperature Material Systems has been selected in the Mobilise scheme. The company develops advanced ceramic matrix composite (CMC) materials designed to withstand extreme temperatures.

In the Demonstrate scheme Chippenham-based Donut Lab Development UK and Bristol’s Electric Aviation Group have been named as lead partners.

Donut Lab Development develops and provides a modular electric vehicle platform with inter-compatible components (pictured) enabling manufacturers to rapidly and affordably build EVs for various applications.

Electric Aviation Group has been working with McLaren on an ultra-lightweight advanced electric motor.