The British government has unveiled a wide-ranging investment programme aimed at accelerating the country’s transition to electric mobility, including £2 billion in new funding under the DRIVE35 scheme to support domestic electric vehicle (EV) manufacturing, research, and supply chain development through 2030. Additional funding is also being directed toward public charging infrastructure, and a new consumer purchase incentive scheme for electric vehicles is reportedly in development.
DRIVE35, part of the government’s Advanced Manufacturing Sector Plan, is designed to support zero-emission vehicle production across the automotive value chain – from gigafactories and established carmakers to startups and prototype developers. The programme includes an extra £500 million earmarked for R&D through 2035 and is expected to help secure jobs and reinforce the UK’s position in EV innovation.
“We’re helping British carmakers get to the front of the pack by working hand in hand with investors to build a globally competitive electric vehicle supply chain,” said Business and Trade Secretary Jonathan Reynolds. He added that the government is delivering “the biggest set of announcements for the sector in the last decade,” including a new trade agreement with the U.S. to ease automotive tariffs and reforms to ZEV (Zero Emission Vehicle) mandate rules.
Despite being Europe’s top EV market in 2024, with 382,000 EVs sold and more than 82,000 public charge points installed, the UK’s transition to zero-emission vehicles has progressed more slowly than expected. Automakers have struggled to meet government-mandated EV sales quotas, particularly after subsidies were scaled back in recent years. Several manufacturers, including Stellantis, warned of cutbacks to UK operations without further government support. The recent collapse of Britishvolt’s battery gigafactory project further highlighted the sector’s challenges.
As part of the latest initiative, the UK will inject an additional £63 million into EV charging infrastructure, including grants for home chargers where off-street parking is unavailable, workplace charging installations, and electrification of NHS fleets. The government also plans to deploy over 100,000 new charge points using funds from the £381 million Local Electric Vehicle Infrastructure (LEVI) programme.
Transport Secretary Heidi Alexander indicated that a new EV purchase incentive could be announced this week. “We are going to be making some announcements later this week on how we make it more affordable for people to buy an electric vehicle,” Alexander told the BBC. According to reports from the Telegraph, a £640 million scheme is under consideration, potentially reviving subsidies that were discontinued in 2022, with eligibility criteria expected to favour UK-built models. Full details are anticipated on Tuesday.
