Labour backs British EV supply chain with £2.5bn

Staff
By Staff
2 Min Read

Britain is betting big on electric vehicles by backing the factories, kit and supply chains that actually make them.

The Government’s new DRIVE35 programme sets out a £2.5bn plan to anchor EV manufacturing in the UK, focusing less on shiny end products and more on the hard industrial plumbing underneath.

At its core, DRIVE35 is about rebuilding the UK’s automotive supply chain for a zero-emission era, from batteries and power electronics to motors, software and advanced materials.

Ministers want more of that value created and kept onshore, rather than imported.

The programme runs from 2025 to 2030 with longer-term support mapped out to 2035. Around £2bn is earmarked for capital investment, with a further £500m for research and development to push technologies from lab to factory floor.

Funding is split across three strands.

One backs innovation, helping companies develop next-generation EV and battery technologies.

Another focuses on scale-up, supporting pilot lines and early manufacturing.

The third targets full industrial transformation, helping firms invest in large-scale plants, retool factories and expand capacity.

The aim is simple, to give manufacturers the confidence to invest in the UK rather than overseas, strengthen domestic capability and reduce reliance on fragile global supply chains.

Government analysis suggests the programme could unlock billions in private investment, support tens of thousands of skilled jobs and help the country hit production levels of more than 1.3 million vehicles a year by 2035.

It is also pitched as a major lever for cutting emissions from road transport while keeping Britain competitive as global EV markets accelerate.

DRIVE35 is designed as a cleaner, more coherent successor to earlier automotive schemes, with clearer funding routes for SMEs, scale-ups and major manufacturers alike.

Delivery will run through established bodies working directly with industry.

Labour backs British EV supply chain with £2.5bn appeared first on Energy Live News.

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