UK Commits £130M to EV and Mobility Innovation
Synopsis
The government will back zero-emission vehicle technologies, autonomous mobility projects and advanced manufacturing to support the transition to cleaner transport.
The government will invest nearly £130 million in UK EV funding in a new package to promote zero-emission vehicle technology and connected mobility projects.
Nearly £65 million will be raised from public funds and the balance from industry partners. It contains almost £50 million to fund zero-emission vehicle technology development projects and £17 million for nine connected and automated mobility projects.
Funding Covers Vehicle Technology and Research
The UK EV funding will be provided via the government programme, DRIVE35, for automotive research, development and manufacturing.
Research areas are related to vehicle sensors, brake-by-wire or computer-based vehicle testing. The programme also includes the development of technologies such as batteries, electric motors, power electronics and hydrogen fuel cells.
The government has committed £4 billion in DRIVE35 funding from 2035, an extra £1.5 billion of which was announced in the 2025 Budget.
New funds for UK EVs coincide with a rise in EV registrations in the UK. New AutoMotive reported that battery electric vehicles (BEVs) made up 27.4% of new car registrations in the UK in July 2026, with 43,547 vehicles being registered for the month.
The battery electric vehicle market accounted for 25.3% of new car registrations for the first seven months of 2026. As a result of the flexibilities within the scheme, the actual requirement for vehicles to be sold in the market in 2026 are 24.6% (33% target in the UK).
Global EV Market Continues to Expand
The UK EV funding announcement follows a wider rise in EV sales in the world. According to IEA Global EV Outlook 2026, global EV sales will hit 20 million in 2025, accounting for 25% of total car sales.
Nearly 55% of electric car sales in China, 28% of those in Europe and just under 10% in the United States. The IEA predicts electric vehicle sales will expand to 23 million, or approximately 28% of global car sales in 2026.
The UK EV funding will complement the existing government support for the transition to zero-emissions vehicles as manufacturers and suppliers develop the technologies to support the transition.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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