Government deal to establish UK as a world leader in the future of mobility

UK Business and Energy Secretary Greg Clark has unveiled the government’s first ever Automotive Sector Deal, aimed to extend the partnership between government and the automotive industry, boost investment in emerging technology and establish the UK’s leadership in meeting the future mobility and clean growth challenges outlined in the recently published Industrial Strategy.

The deal includes up to £32mn of new joint funding for an industry-led supply chain competitiveness programme that will help grow the UK supply chain and make it internationally competitive. It secures joint investment and long-term commitments between government and industry in areas including the design and development of connected and autonomous vehicles (CAV), the research and development of battery technology and accelerating the manufacture of ultra-low and zero emission vehicles.

As part of this, the government has also announced £26.4mn of investment, match-funded by industry to total £52.8mn, to help develop the next generation of driverless and low-carbon vehicles. Three flagship projects will be led by Ford, GKN and Jaguar Land Rover:  

• E-Prime – a project led by Ford’s UK based global manufacturing engineering team working with machine tool supply chain partners to develop process and equipment for the production of ultra-high volume next generation electrified powertrain systems.

• ACe-Drive – development of GKN’s future generation e-Drive system platforms, utilising high speed electric machines and advanced high speed power electronics. In conjunction with universities and businesses, this project aims to further grow UK capability in the design and manufacture of e-machines and power electronics.

• VERBIUS – development of future state of the art electric hybrid vehicle systems for Jaguar Land Rover, in conjunction with universities and businesses across the UK. The project aims to significantly improve vehicle system efficiency through the utilisation of innovative electronic systems and componentry.

The UK government has already committed through the Advanced Propulsion Centre some £500mn over 10 years to 2023 to research, develop and industrialise new low-carbon automotive technologies in the UK, with industry providing £500mn match funding for collaborative R&D projects. The government is also planning to invest up to £225mn from 2023 to 2026 to support automotive R&D, with industry providing equivalent match funding. Meanwhile, in a bid to encourage the transition to ultra-low and zero emission vehicles, the Faraday Battery Challenge sees government investing £246mn to make the UK a world leader in the design, development and manufacture of batteries for the electrification of vehicles.

Some £250mn of government investment is to focus on the development and deployment of connected and autonomous vehicles (CAVs), while £16mn will be invested, subject to business cases, for an industry-led match-funded national supplier competitiveness and productivity improvement programme to support a sustainable and internationally competitive UK supply chain for future volume vehicle production.

The deal acknowledges that the UK automotive industry has benefitted from the European market and as the UK leaves the EU, the industry has welcomed the government’s ambition to achieve a new relationship that is free from tariffs and without friction to trade – factors that are fundamental to the competitiveness of the UK automotive sector.

Further proposals are being shaped for the next phase of the Automotive Sector Deal, with a focus on capitalising on the UK’s capabilities including in the digital design and testing space which will substantially reduce the time and cost of developing the next generation of vehicles.