The Government has announced a new £89m (€103m) investment package that it says will reinforce the UK as a world leader in zero emissions vehicle technology.

Lunaz will develop an upcycled HGV to transport end-of-life EV batteries to and from Altilium’s recycling facilities

The joint government and industry funding has been awarded to 20 new net zero tech projects that include hydrogen-powered offroad vehicles, a new lithium scale-up plant and new EV battery systems said to be revolutionary. The Government is providing £45.2m of the investment, backed by a further £42.7m from the automotive industry.

Awarded through the Advanced Propulsion Centre UK (APC), the 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 winners of the latest collaborative R&D competition funding, worth over £67m, include Aston Martin, which is accelerating the development of a luxury battery electric vehicle platform, and engine maker Perkins, a subsidiary of Caterpillar, which will develop a net-zero, hydrogen-hybrid, integrated power system for off-highway vehicles.

The APC has also awarded £11.3m 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 SuRV competition supports scale-up projects to assess if businesses in the UK automotive supply chain are ready for growth and expansion.

Projects include Green Lithium, which plans to build a lithium scale-up plant in Teesside, and Ilika Technologies, which is 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, which is 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. Meanwhile, clean technology group Altilium is partnering with Lunaz to develop an innovative and sustainable solution for the safe transportation and discharging of end-of-life EV batteries.

The 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. Examples include work to unlock 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.

Finally, the APC has also announced the winners of the Niche Vehicle Network (NVN) Production Readiness Competition. Sponsored by the APC and supported by Innovate UK, this provides grant funding to UK SMEs leading the way in sustainable, cutting-edge technology design.

It’s awarded a total of £1.1m in grant funding 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.

APC chief executive Ian Constance said: “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.”