Government works in partnership with industry to unlock £30 million electric vehicle R&D project
Source: gov.uk (2025-10-15)

Backed by £15 million in government funding, Toyota will lead a cutting-edge match-funded project to boost zero-emission vehicle innovation in a major win for the government's modern Industrial Strategy.

Toyota to lead cutting-edge match-funded project to boost zero-emission vehicle innovation.

£15 million in HMG funding, supported by the government’s modern Industrial Strategy, will go towards accelerating electric mobility tech, supporting high quality jobs, and fuel long-term growth.

Funding supports the government’s ambition to boost business investment in advanced manufacturing sector by 2035, helping UK firms lead in industries of the future and deliver on the Plan for Change.

The government has enabled over £30 million in joint funding with industry to boost electric vehicle innovation in the UK.

The project, spearheaded by Toyota alongside other key project partners, will accelerate the feasibility of the development of zero-emission technology, drive innovation in cutting-edge R&D and support high quality automotive engineering jobs in the UK.

Backed by £15 million in government funding, the investment will support the feasibility of electric mobility solutions designed to meet the growing demand in the UK for zero emission vehicles and delivering on the government’s Plan for Change.

The vehicle will feature cutting-edge innovations including an integrated solar roof for enhanced energy efficiency, advanced connectivity for smart urban integration and lightweight, sustainable materials designed for recyclability.

The project includes key partners such as the University of Derby and Elm Mobility Limited, combining academic expertise and entrepreneurial agility to deliver a transformative mobility solution.

Industry Minister Chris McDonald said:

This shows the power of our partnership with industry, driving innovation and helping investors build a globally competitive electric vehicle supply chain in the UK as we deliver on our Plan for Change.

Economic growth is our number one priority, and by funding our world leading auto sector our modern Industrial Strategy is creating the right conditions for increased investment, bringing growth, supporting jobs, and opportunities to every part of the UK.

Dariusz Mikolajczak, Managing Director of TMUK, said:

We are delighted to receive support from the Advanced Propulsion Centre for this important feasibility study. This funding allows us to advance our understanding around the feasibility of creating a cutting-edge battery electric vehicle that addresses the growing demand for sustainable urban mobility. The project acknowledges TMUK’s overall project excellence and will further strengthen the capabilities of our members.

The R&D project will explore the feasibility of developing electric micro mobility vehicles in the UK, supporting high quality automotive engineering jobs and deepening the knowledge and skills within the UK’s advanced manufacturing sector.

The multi-million-pound funding package has been awarded through the Advanced Propulsion Centre UK (APC) Collaborative Research and Development programme, helping to unlock further private investment and supporting the government’s ambitions to build an end-to-end supply chain for zero-emissions vehicles in the UK.

Rik Adams, Innovation Delivery Director, The Advanced Propulsion Centre UK (APC):

APC is very proud to be able to support Toyota with this Electric Vehicle (EV) urban mobility project, which embodies much of what DRIVE35 aims to support - innovation, UK competitiveness, productivity, and zero emission vehicles. As an integral part of the UK automotive industry, we are delighted that Toyota is partnering with some of our innovative SME businesses, such as ELM, and our world-class academics from the University of Derby to deliver a cutting-edge vehicle concept designed, developed and tested in the UK.

Earlier this year, the government announced the launch of DRIVE35 to support the shift to zero-emission vehicle manufacturing. Announced in the Advanced Manufacturing Sector Plan, it offers £2.5 billion in capital and R&D funding to 2035. The programme backs everything from large-scale gigafactories to start-ups and prototypes for strategic vehicle technologies, aiming to boost innovation, attract investment, and strengthen the UK’s automotive supply chain.

Since its foundation in 2013, the APC R&D programme has supported 354 low-carbon and zero-emission projects involving 614 partners. Working with companies of all sizes, this funding since 2013 is estimated to have helped create or safeguard over 59,000 jobs in the UK. The technologies and products are projected to save over 425 million tonnes of CO2.

ENDS