Government’s £65m vehicle innovation funding highlights opportunities for North East technology supply chain

The Government’s latest investment in the UK automotive sector could help drive innovation across industries represented at NETPark, including advanced materials, electronics, sensing technologies, energy storage and advanced manufacturing.

A £65 million support package has been announced for firms producing zero-emission vehicles, with the funding set to be matched by investment from the automotive industry, creating a combined £130 million package. The funding includes £50 million for car manufacturers and research partners to help scale up electric vehicle production.

The investment forms part of the Government’s £4 billion Drive35 programme, which is designed to accelerate the electrification of the UK automotive industry. Officials at the Department for Business, Innovation, Science and Trade say the funding will support 1,800 jobs directly, alongside thousands more across the wider supply chain.

The announcement is particularly relevant to North East businesses following confirmation that funding recipients include a consortium led by Sunderland-based Nissan, focused on self-driving vehicle technologies, as well as a consortium led by Bentley.

Nissan’s involvement reinforces the North East’s position as a key centre for automotive innovation and advanced manufacturing, highlighting the importance of the region’s wider technology and manufacturing ecosystem as the industry transitions towards zero-emission and next-generation vehicles.

Industry Minister Blair McDougall said:“Britain invented the modern motor industry, and we’re determined to ensure the next generation of vehicles are designed and built here too. This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain.” 

The funding announcement follows recent growth in the UK new car market, with figures showing registrations increased by 11.7% in July compared with the same month last year, driven by strong demand for electrified vehicles.

For NETPark’s community of science and technology companies, the investment underscores continued demand for innovation in areas such as battery technologies, sensing systems, advanced electronics and manufacturing processes that support the future of vehicle development.

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