The West Midlands Combined Authority has launched a £50 million fund to help automotive suppliers in the region transition to electric vehicle (EV) production. The four-year West Midlands Supplier Readiness and Transformation Fund, backed by the government's DRIVE35 initiative, offers grants of between £250,000 and £3 million, requiring at least 50 per cent private match funding.
Grants to Drive EV Supply Chain Growth
Mayor Richard Parker announced the fund, saying it will help businesses capitalise on opportunities in fast-growing EV supply chains. Suppliers can apply for a share to win new contracts, create hundreds of skilled jobs, and protect thousands more. The fund was approved by the West Midlands Combined Authority's Investment Board in February 2026.
Companies will use the funding to invest in new equipment, skills, and production capacity to compete in the expanding EV market. The region is one of only two to secure £50 million of government investment, alongside the North East.
Mayor: West Midlands Still Engine Room of UK Motor Industry
Speaking at the Advanced Propulsion Centre at the University of Warwick, Mayor Parker said: "The West Midlands is still the engine room of the UK motor industry. It's one of our great economic strengths and why I put it at the heart of my Growth Plan to create skilled jobs with higher wages." He added: "This is a big investment by government because it knows how crucial the success of our region's automotive sector is to the wider UK economy."
Industry Minister Highlights National Investment
Industry Minister Chris McDonald said: "Through our Modern Industrial Strategy we're delivering £4 billion into zero emission vehicle manufacturing, marking the biggest investment into the car industry since the post-war era and driving economic growth and innovation across the country." He noted that £100 million is being invested in the West Midlands and North East to electrify manufacturing, boost supply chains, and secure jobs.
Region's Automotive Sector at a Glance
The West Midlands is home to one of the UK's largest automotive sectors, with 1,000 companies employing more than 30,000 people in car manufacturing, engineering parts, and developing EV and battery technology. The fund aims to strengthen supply chain resilience as the country moves towards zero-emission technologies.
