Two North East industries in the advanced manufacturing sector are to share in grants totalling more than £700mn aimed at boosting economic growth under the government’s Modern Industrial Strategy.
Companies involved in motor and battery manufacturing, including SMEs (small and medium-sized enterprises) will be among those to benefit.
Business Secretary Peter Kyle said: “This government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country – helping to boost economic growth and our resilience, secure jobs and put more money in people’s pockets.
“In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need to plan not just for the next year, but for the next ten years and beyond. That is what sets us apart from the rest, and will help ensure advanced manufacturing remains a thriving sector in the UK for decades to come.”
The Department for Business and Trade (DBT) said the government was injecting £47mn worth of support for key R&D battery projects through the Battery Innovation Programme, helping to create skilled jobs, a stronger supply chain and position the UK as a globally competitive destination for battery manufacturing.
Auto businesses would benefit from a £190mn boost to ensure the automotive industry remained ahead of the competition on the global stage.
DRIVE35
Suppliers in the North East and West Midlands could capitalise on £100mn worth of DRIVE35 grant funding to help transition towards EV manufacturing, which would strengthen supply chain resilience and put Britain on track to become a clean energy superpower, said the DBT.
DRIVE35, which is designed to deliver over 50,000 direct jobs, cut millions of tonnes of CO2 emissions and unlock up to £7.46 billion in private investment by 2035, has been awarded to at least six North East business partnerships headed by Nissan Motor Manufacturing (UK), the North East Automotive Alliance, Cummins Electrified Power Europe, Cummins Ltd, Weardale Lithium and Northern Lithium.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said:
“Recent global events have highlighted the need for resilient supply chains, making this new investment in the sector both timely and important. The UK has a highly skilled and innovative automotive industry, but long‑term competitiveness depends on a policy framework that encourages investment.
“The Modern Industrial Strategy provides that forward‑looking support, and [this] announcement demonstrates strong government backing for one of the UK’s most vital industries.”
This report is based on a press release from the DBT.
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