Bentley, Nissan and more will receive investment as industry transitions towards electric and connected cars
The UK government has announced a £130 million investment in the nation’s automotive industry, in a bid to speed up its transition to building electric vehicles.
Half the investment has been provided by the public purse, and it will be matched by the industry.
Among the biggest names to receive investment are Bentley, Nissan and electric motor manufacturer Yasa, but a number of smaller companies and start-ups will also receive funding.
This will support more than 1800 jobs, the government said, and demonstrates new prime minister Andy Burnham's desire to reindustrialise the nation – of which the automotive industry is a key part.
Cars are the UK’s most valuable goods export, totalling £47.7 billion in the year ended April 2026.
“Britain invented the modern motor industry and we’re determined to ensure the next generation of vehicles are designed and built here too,†said industry minister Blair McDougall.
Ian Constance, chief executive of the Advanced Propulsion Centre – a non-profit organisation that bridges the industry, academia and government – said the funding “is about strengthening the UK’s capability to design, develop and build the technologies that will define the vehicles of the futureâ€.
Manufacturing
Some £8m in funding has been given to two consortiums bringing together the industry and academia, with a view to bringing new products and processes to market.
Bentley, together with EV battery start-up Ionetic, is working to localise the production of cells and packs for future cars.
Wire harness manufacturer Q5D Technologies leads the other group, which also comprises Artifex Interior Systems, JLRÂ and the University of Warwick.
Its project, named AutoLoom, looks to industrialise a Q5D technology that replaces manual assembly of vehicle wiring looms with a fully automated process using computer-aided design.
Connected and autonomous vehicles
Nine projects in the UK’s connected and automated mobility (CAM) industry have been awarded an undisclosed sum.
These include Nissan and the University of Warwick’s Warwick Manufacturing Group, whose ADventure project aims to create an autonomous mobility service for cities.
Meanwhile, brake manufacturer Alcon, together with the University of Surrey and autonomous vehicle technology firm EVIE, is working on a brake-by-wire system with anti-lock brakes and electronic stability control for use in level-four autonomous vehicles.
Level four autonomy takes full control away from the driver, albeit within geofenced locations – such as for local driverless taxis.
Highway services firm Ringway, autonomous vehicle firm Fusion Processing and gritter manufacturer Econ Engineering will develop and trial autonomous impact protection vehicles and road gritters.
Other CAM projects being funded include the development of autonomous airport vehicles, which will be trialled at Teesside airport, as well as others in artificial intelligence and radar technologies.
Commercialising new tech
Ten companies will be given £9m in government funding that's intended to speed up the development and commercialisation of technologies for future EVs.
Yasa’s Project Resilience will demonstrate an electric motor free of rare-earth metals, which is hoped to improve the industry’s sustainability and insulate it against geopolitical threats to supply chains.
Greentech Industries will build the UK’s first automated disassembly plant for EV batteries, while semiconductor manufacturer Nexperia will develop a new transistor architecture to improve the efficiency of EVs’ electrical systems.
Meanwhile, battery company Eatron Technologies is working on a 48V (mild-hybrid) battery management system using semiconductor firm Infineon’s next-generation computer chips.
Start-ups
A total of 16 small companies and start-ups will be given £2.7m in government funding, for projects focused on subjects including material recycling, electric motor design, cybersecurity and connectivity.
A further five companies will receive £26.9m from the government, aiming to scale up domestic lithium production, manufacturing of mass-market axial-flux electric motors and advanced power electronics.
