Overview
- The government and delivery partners announced the £130 million package on August 10–11, 2026, combining nearly £65 million in public grants with matched private investment.
- Roughly £50 million of public funding is earmarked to help firms and research partners scale production of zero-emission vehicle components to build domestic battery and parts capacity.
- A £17 million tranche will back nine Connected and Automated Mobility (CAM) Pathfinder projects led by industry partners including Nissan to test sensors, brake-by-wire controls and AI simulations.
- The package is being delivered through the DRIVE35 programme with the Advanced Propulsion Centre and Innovate UK and is part of a broader £4 billion DRIVE35 commitment through 2035.
- Officials say the investment targets the North East and West Midlands to support about 1,800 skilled manufacturing jobs and to onshore supply chains, though disbursement timetables and long-term outcomes remain at an early implementation stage.