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On 13 July 2025, the UK Government launched DRIVE35, an ambitious £2.5 billion investment strategy spanning a decade, aimed at accelerating the nation’s shift towards zero-emission vehicles (ZEVs) and securing the future of British automotive manufacturing.
What Is DRIVE35?
DRIVE35 (Driving Research & Investment in Vehicle Electrification) serves as a pivotal component of the UK’s modern Industrial Strategy, supported by two key funding streams:
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£2 billion in capital and transformation funding (Available through to 2030)
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£500 million dedicated to research and development (Accessible until 2035)
The goal is to foster initiatives ranging from gigafactories and established EV manufacturing to startups, prototypes, and next-generation mobility technology.
The DRIVE35 framework is expected to generate tens of thousands of new jobs, stimulate billions in economic growth, and aid the UK in reducing millions of tonnes of CO₂ emissions through expanded ZEV production and innovation.
Why is DRIVE35 important?
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In 2024, the automotive sector contributed £21.4 billion in GVA and employed approximately 132,000 individuals across the UK, including skilled roles and apprenticeships.
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The UK led Europe in EV sales in 2024, selling over 382,000 vehicles—a 20% increase compared to the previous year—and hosted more than 82,000 public charging points, with new ones being deployed every half hour.
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DRIVE35 aims to attract fresh investment, nurture innovation, and reinforce British leadership within EV supply chains, ranging from batteries to power electronics.
Business and Trade Secretary Jonathan Reynolds said:
"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 in the UK as we deliver our Plan for Change.
We’re taking action to back the industry for the future with the biggest set of announcements for the sector in the last decade. This includes securing a landmark trade deal with the US to bring down tariffs for British car manufacturers, measures in our modern Industrial Strategy to lower electricity prices and updating the ZEV mandate, supporting UK manufacturers to safeguard jobs, and secure the future of the sector.
Economic growth is our number one priority, and by funding our world leading auto sector we are creating the right conditions for increased investment, bringing growth, jobs, and opportunities to every part of the UK."
Find out more about DRIVE35 on the UK Government's Website: