A significant new fund aimed at helping West Midlands companies in the electric vehicle (EV) sector transform their operations has received official backing. The West Midlands Combined Authority’s Investment Board has approved the comprehensive business case for the West Midlands Supplier Readiness and Transformation Fund—Regional Drive 35 pilot.
Set to be ratified by the West Midlands Combined Authority Board next month, the fund will offer grants ranging from £250,000 to £3 million starting April. Companies seeking support must provide at least 50% private match funding.
This initiative enables businesses to invest in new equipment, develop skills, and expand production capacity, equipping them to compete effectively in the rapidly growing EV market. Scheduled to run over four years, the fund is part of the government’s broader DRIVE35 program, which aims to fortify UK supply chains and promote domestic manufacturing as the nation shifts toward zero-emission technologies.
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The West Midlands is home to one of the UK’s largest automotive sectors, featuring around 1,000 companies and employing over 30,000 people involved in car manufacturing, engineering components, and cutting-edge EV and battery technology development.
Approximately 100 firms have been identified as potential beneficiaries of this scheme. Jim O’Boyle, Coventry City Council’s Cabinet Member for Jobs, Regeneration and Climate Change, emphasized the importance of supporting companies through this transition. He said, “This is a vital economic opportunity. Many businesses are not yet equipped to adapt, and whether one supports electric vehicles or not, electrification is inevitable. Our region’s supply chain is extensive and requires substantial backing.”
West Midlands Mayor Richard Parker highlighted the £50 million government investment as part of his commitment to keeping the region’s motor industry at the forefront of the EV transition. He remarked, “As the birthplace of the UK car industry, we are ushering in a new era of electrification over 100 years after the first petrol cars rolled off the Daimler production line in Coventry. Government support reflects our region’s innovative spirit and the vital role our automotive sector plays in the broader British economy. This funding marks a promising new chapter in our long and proud automotive legacy.”