The UK government has underlined its commitment to building a globally competitive battery sector and supporting to the transition to electric vehicles with the publication of its Advanced Manufacturing Sector Plan today.

With a commitment of up to £4.3 billion in funding, the plan sets out a bold vision to support a thriving manufacturing sector in the UK, driving investment in innovation across six priority industries, including the automotive and batteries sectors.

Highlights include:

• £2bn to 2030 in capital and R&D funding for zero emission vehicle manufacturing, plus an additional £500m R&D to 2035, delivered through the new ‘Driving Research and Investment in Vehicle Electrification’ (DRIVE35) grant funding initiative.
• £452m to 2030 to support next-generation battery technologies through the new Battery Innovation Programme (formerly the Faraday Battery Challenge).
• Support to expand the UK’s commercial recycling capabilities and increase battery collection rates, improving economic resilience by reducing demand for virgin inputs.
• Circular Economy Strategy to be published in Autumn 2025, exploring how circular practices like re-use and recycling can boost resilient supply chains and reduce the environmental impact of resource extraction.
• £160 million to stimulate growth in key manufacturing clusters for each of the UK’s Investment Zones, including the North East and South West.

At Altilium, we welcome the Government’s ambition to ‘make the UK a science superpower for batteries’ and look forward to working with industry partners and policymakers to help deliver on this vision.