PRESS RELEASE : £89 million of funding to develop cutting edge new electric vehicle technology [October 2023]

• £89 million in joint government and industry funding to help the UK lead the way on cutting edge net zero tech, creating jobs and helping to grow the economy.
• 20 projects across four competitions include developers of revolutionary new offroad vehicles, net zero tractors and groundbreaking new EV battery systems.
• Funding from one competition alone could create or safeguard over 4,700 UK jobs and save nearly 65 million tonnes of CO2 being emitted over next decade.

£89 million of funding has been awarded to 20 cutting edge net zero tech projects including hydrogen-powered offroad vehicles, a new lithium scale-up plant and revolutionary new EV battery systems, reinforcing the UK as a world leader in zero emissions vehicle technology.

The landmark funding package includes four collaborative R&D projects, five scale-up projects to assess if businesses in the automotive sector are ready for growth, and seven feasibility studies to prepare projects to develop large-scale manufacturing facilities in the UK.

The funding has been awarded through the Advanced Propulsion Centre UK (APC), in support of ambitions to build an end-to-end supply chain for zero emission vehicles (ZEVs) in the UK. £45.2 million of this investment comes from Government, backed by a further £42.7 million from the automotive industry.

Minister for Industry and Economic Security Nusrat Ghani said:

Together with industry, we’re providing a huge £89 million of funding to drive 20 groundbreaking net zero tech projects which will help grow the economy and create UK jobs in the industries of the future.

From net zero tractors to cutting-edge battery projects, we’re taking decisive action to back the UK’s innovators and ensure we remain at the forefront of zero emission vehicle technology.

From luxury cars to workhorse excavators, the latest in collaborative R&D support via the APC – worth over £67 million – will accelerate the development of zero emission technology in the UK, safeguarding and creating jobs and supporting investment in cutting edge R&D.

Winners of the latest collaborative R&D competition funding include Aston Martin, who are accelerating the development of a luxury battery electric vehicle platform and Perkins, who will develop a net-zero, hydrogen-hybrid integrated power system for offroad vehicles.

The projects are estimated to create or safeguard more than 4,700 jobs in total and save nearly 65 million tonnes of CO2 being emitted over the next decade as a result of the work undertaken by these four R&D projects alone.

APC Chief Executive Ian Constance said:

This latest round of funding coincides with the APC’s 10th anniversary. We have seen over £1.4 billion of investment into automotive projects since the APC was set up, and I am proud of the impact that we have made here in the UK.

This latest announcement includes a diverse set of OEMs and suppliers that demonstrate the strength of UK automotive. They will further add to our portfolio of innovative projects and continue to drive the UK to deliver on its net zero ambition.

£11.3 million has also been awarded to 12 UK-based projects funded through the second instalment of the SuRV (Scale-up Readiness Validation) competition and the fourth round of the APC’s Automotive Transformation Fund (ATF) feasibility studies competition.

The ATF’s Scale-up Readiness Validation (SuRV) projects will support scale-up projects to assess if businesses in the UK automotive supply chain are ready for growth and expansion.

Projects include Green Lithium who plan to build a lithium scale-up plant in Teesside, and Ilika Technologies who are working to accelerate the scale-up of Ilika’s solid state battery technology.

The ATF Feasibility Studies will produce decision-ready business cases, in preparation for projects which will develop large-scale manufacturing facilities in the UK.

The seven projects include Cornish Lithium, who are establishing a lithium processing plant in the UK to produce anode material for EV batteries, and Aberdeen Minerals Limited for the study of innovative mineral processing routes.

The support delivered through the APC is unlocking further private investment and supports the government’s ambitions to build an end-to-end supply chain for zero-emissions vehicles in the UK.

Today’s announcement comes on top of funding also being invested by the Government through the Automotive Transformation Fund (ATF) to develop a high-value end-to-end electrified automotive supply chain in the UK.

This includes unlocking private investment in gigafactories, battery material supply chains, motors, power electronics, and fuel cell systems. The ATF is being delivered by the Department for Business and Trade in partnership with the APC.

Also announced today are the winners of the Niche Vehicle Network (NVN) Production Readiness Competition, sponsored by the APC and supported by Innovate UK, provides grant funding to UK SMEs leading the way in sustainable, cutting-edge technology design.

A total of £1.1 million in grant funding has been awarded to four projects, including a zero emission Ariel Nomad – a low volume performance offroad vehicle – featuring a highly optimised EV powertrain, and also a UK-made electric scooter from Swifty Scooters, which is optimised for superior rider safety and ensures a long product lifespan.

After engagement with industry, DBT is building on programmes like the Advanced Propulsion Centre and taking decisive action to ensure future investment in zero emission vehicle manufacturing.

ENDS

Notes to editors:

A full breakdown of the winning projects is included below.

APC Collaborative R&D (APC23) projects led by:

Aston Martin: Accelerate the development of a luxury battery electric vehicle platform, enabling a route to net zero, including vehicle lightweighting, a digital toolchain and electrification training.

Yasa: Makers of the world’s lightest in-wheel electric motor and acquired by Mercedes in 2021, is focused on creating an innovative combined electric propulsion & handling system, which aims to revolutionise existing EV (Electric Vehicle) systems.

Gestamp’s Autotech Engineering R&D UK: Leads a consortium on a project to create new design methodologies, processes, and materials for reduced embodied carbon footprint in product designs.

Perkins: The historic British engine maker, a subsidiary of Caterpillar, will develop a net-zero, hydrogen-hybrid, integrated power system for off-highway vehicles.

Automotive Transformation Fund Scale-up Readiness Validation (SuRV2) projects:

Helix: Hx-SuRV2: Validating Helix’s readiness for the scale-up of high power-density and scalable electric motor platforms focusing on ‘high-premium’ automotive applications.

Green Lithium Refining: Green Lithium plans to build a lithium scale-up plant in Teesside. The plant will support the commissioning and training of a skilled workforce for its full-scale plant in Teesside, which will produce enough refined lithium to enable the downstream production of over 1 million electric vehicles.

Advanced Electric Machines: Project SIMPLE aims to establish an efficient, scalable UK-based manufacturing process for sustainably produced traction motor systems in electric passenger vehicles.

Geothermal Engineering: Geothermal Engineering Limited will use this award to install Direct Lithium Extraction (DLE) at the UK’s first deep geothermal power plant at the United Downs Industrial Park in Cornwall.

Ilika Technologies: Ilika Technologies, UK Battery Industrialisation Centre (UKBIC) and MPAC are partnering in project SiSTEM to accelerate the scale-up of Ilika’s solid state battery technology.

Automotive Transformation Fund Feasibility Study projects (FS4) projects:

Gaussion: Magneto-enhancement technology for solid-state batteries.

Talga Anode UK: Assessing the feasibility of production of anode materials from recycled graphite and a graphite-silicon composite anode material using in-situ silicates from Talga’s Swedish graphite ore.

Altilium: Partnering with Lunaz to develop an innovative and sustainable solution for the safe transportation and discharging of end-of-life EV batteries.

Strip Tinning: This project will study the feasibility of investing in very high-volume manufacturing of their Cell Contacting and Management System. The CCMS is a safety-critical component of the power electronics system of Battery Electric Vehicles.

Greenroc Mining: Establishing a graphite processing plant in the UK to produce anode material for EV batteries from graphite concentrate from the Amitsoq Graphite Project in southern Greenland.

Cornish Lithium: Focusing on commercial extraction of lithium and other battery metals in Cornwall, notably the Trelavour hard-rock lithium mica deposit near St Austell. Funding to understand the available lithium in the ground and how much can be produced & a life cycle assessment will quantify environmental impacts.

Aberdeen Minerals:Study of innovative mineral processing routes to accelerate the low-carbon production of cathode raw materials from Northeast Scotland.

Niche Vehicle Network (NVN) Production Readiness Competition winners:

Ariel Electric with partners Rockfort Engineering and BAMD: Developing a zero emission Nomad, ZELV3, featuring a highly optimised EV powertrain and a lightweight aerodynamic body that improves vehicle efficiency.

Maeving with project partners Alexander Technologies and Muon Tech: Developing a new, higher energy density, removable battery system, with improved thermal performance, for lightweight electric motorcycle. The project will move their battery production from a Far Eastern to a UK based supplier, supporting their ambition to make Britain a leading manufacturer of electric motorcycles.

CALLUM with partners Nyobolt and Codem: Developing a lightweight, rapid-charge, electric all-terrain vehicle (ATV), which will better the performance attributes of ICE ATVs that currently dominate the market.

Swifty Scooters with partners Chasestead and PMBL: Developing a UK made electric scooter optimised for superior rider safety and ensures a long product lifespan by way of premium build quality and enabling fix and repair within both the scooter design and battery design.

About the Advanced Propulsion Centre

The Advanced Propulsion Centre (APC) collaborates with UK government, the automotive industry and academia to accelerate the industrialisation of technologies, supporting the transition to deliver net-zero emission vehicles.

Since its foundation in 2013, APC, through government, has funded 261 low-carbon projects involving 480 partners, working with companies of all sizes, and will have helped to create or safeguard over 58,000 jobs in the UK. The technologies developed in these projects are projected to save over 400 million tonnes of CO2, the equivalent of removing the lifetime emissions from 16.1 million cars.

With its deep sector expertise and cutting-edge knowledge of new propulsion technologies, APC’s role in building and advising project consortia helps projects start more quickly and deliver increased value. In the longer term, its work to drive innovation and encourage collaboration is building the foundations for a successful and sustainable UK automotive industry.

In 2019 the UK government committed the Automotive Transformation Fund (ATF) to accelerate the development of a net-zero vehicle supply chain, enabling UK-based manufacturers to serve global markets. ATF investments are awarded through the APC to support strategically important UK capital and R&D investments that will enable companies involved in batteries, motors and drives, power electronics, fuel cells, and associated supply chains to anchor their future.

For more information go to apcuk.co.uk or follow us @theapcuk on X and Advanced Propulsion Centre UK on LinkedIn.