Major new fund to help West Midlands companies in the electric vehicle sector is backed
A major new fund to help West Midlands companies in the electric vehicle sector transform their businesses has been backed.
Members of West Midlands Combined Authority’s Investment Board endorsed the full business case for the West Midlands Supplier Readiness and Transformation Fund- Regional Drive 35 pilot.
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It will now go to the West Midlands Combined Authority Board next month for it to be ratified.
From April, grants of between £250,000 and £3 million will be available with at least 50 per cent private match funding required.
Companies will be given the funding to invest in new equipment, skills and production capacity to help them compete in the expanding EV market.
The fund will run for four years and forms part of the government’s DRIVE35 initiative which aims to strengthen UK supply chains and boost domestic production as the country moves towards zero-emission technologies.
The West Midlands boasts one of the UK’s largest automotive sectors with 1,000 companies, employing more than 30,000 people making cars, engineering parts and developing state-of-the-art EV and battery technology.
Bosses told Investment Board members that around 100 firms have been identified who may potentially benefit from the scheme.
Jim O’Boyle, Cabinet Member for Jobs, Regeneration and Climate Change at Coventry City Council, said: “I’ll be keeping a close eye on this because, in terms of the economic opportunity, I think this is really important.
“Particularly for transition because too many companies are not in the position to transition and that’s a big issue.
“Doesn’t matter if we’re for or against electric, it’s happening whether you like it or not. The supply chain is massive in this region and needs supporting big time.”
West Midlands Mayor Richard Parker has previously said he secured £50 million for the fund from the Government as part of his plan to keep the region’s motor industry at the forefront of the transition to electrification.
He said: “We are the birthplace of the UK car industry and now, more than 100 years after petrol cars first rolled off the Daimler production line in Coventry, we are powering towards a new era of electrification.
“Government is backing our flair for car building and innovation because it knows a successful West Midlands automotive sector is crucial to the wider British economy.
“This funding is good news and will help us write a bright new chapter in our car industry’s long and proud story.”
