How this £130m investment could make electric cars cheaper to own

The UK government is investing almost £130m in next-generation vehicle technology, with several projects aimed at making electric cars cheaper and easier to own.

The investment includes almost £65m of government funding, matched by industry, and will support projects developing zero-emission vehicle technology and manufacturing.

While the government says the programme will support more than 1,800 jobs, it also has a more direct benefit for motorists in mind: the funding will help businesses produce zero-emission technologies at scale, “simultaneously making EVs cheaper for consumers.”

But could the tech also make electric cars cheaper to run?

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More efficient EVs could cut running costs

Several of the funded projects are focused on improving the technology inside an electric car, including electric motors, batteries and electrical systems.

Oxford-based Yasa is developing a new electric motor, while semiconductor company Nexperia is working on tech designed to improve the efficiency of EV electrical systems. Software company Eatron Technologies is also developing battery-management technology.

For drivers, improvements in these areas could mean an EV uses less electricity to travel the same distance. It could result in lower charging costs and improved range, without manufacturers having to rely solely on fitting larger batteries.

Better tech could mean longer-lasting batteries

Battery management is another area receiving government backing.

For example, Eatron’s project aims to develop a 48V battery-management system using next-generation semiconductor technology.

Better management of an EV’s battery could help improve how it is charged and used, potentially increasing efficiency and helping maintain battery performance over time.

That could make a difference to long-term ownership costs, particularly as battery health becomes an increasingly important consideration for used-EV buyers.

The government wants EV technology made at scale

The investment is being delivered through the DRIVE35 programme, which the government describes as its biggest investment in the UK car industry since the post-war era.

Industry minister Blair McDougall said the government is determined to ensure the “next generation of vehicles are designed and built here too”, while the investment will help secure skilled jobs and strengthen UK manufacturing.

For consumers, however, the important part is whether developing the technology in Britain and producing it at scale eventually brings down costs.

The government says the funding will help businesses move technologies towards commercial production, rather than simply remaining at the research stage.

What does this all mean for EV drivers?

The benefits won’t appear immediately. But the projects being funded point towards a future where EV improvements aren’t simply about putting bigger batteries into cars.

More efficient motors and electrical systems could reduce electricity consumption, while better battery management could help maintain battery performance for longer.

The programme also aims to build up UK supply chains and battery manufacturing, potentially making the production of future EV technology more resilient.

As Ian Constance, chief executive of the Advanced Propulsion Centre UK, put it, the funding is about “supporting businesses to move promising technologies to commercial deployment and manufacturing at scale.”

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