Currently reading: Government R&D fund aims to save start-ups from 'valley of death'

Scale Up scheme – part of £2.5 billion Drive35 fund – will help small firms get inventions into production

The UK government will fund automotive start-ups’ research and development projects in a bid to save them from the “valley of death” between inventing a new product and putting it into production.

The new Scale Up scheme – to be announced by industry minister Sarah Jones later today – will provide grants to companies seeking to set up production lines.

It will help them to develop factories as well as production and testing methods, ensuring they meet business requirements and industrial standards.

Its creation comes after several prominent automotive start-ups collapsed in the crucial phase before industrialisation, including electric van maker Arrival, motor manufacturer Saietta and electromod maker Charge Cars (which has since been rescued by a consortium of unnamed investors).

Funding will come from Drive35, the government’s £2.5 billion fund reserved for supporting the UK car industry’s transition to electric vehicles. 

“With this new initiative, we will ensure the industry stays at the cutting edge of automotive innovation by backing scale-ups and fast-tracking new technologies to market,” Jones said in a statement.

Alongside Scale Up, the government will also look to group EV manufacturing plants by region, starting with the North East and the West Midlands, and launch a £20 million competition for EV start-ups.

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Charlie Martin

Charlie Martin Autocar
Title: Staff Writer

As part of Autocar’s news desk, Charlie plays a key role in the title’s coverage of new car launches and industry events. He’s also a regular contributor to its social media channels, creating content for Instagram, Tiktok, Facebook and Twitter.

Charlie joined Autocar in July 2022 after a nine-month stint as an apprentice with sister publication What Car?, during which he acquired his gold-standard NCTJ diploma with the Press Association.

He is the proud owner of a Mk4 Mazda MX-5 but still feels pangs of guilt over selling his first car, a Fiat Panda 100HP.

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