Automotive Transformation Fund

Country / jurisdiction: United Kingdom · Year: 2023 · Status: In force · Level: National · Type: Voluntary

The Automotive Transformation Fund (ATF) is a funding programme established in 2020 to accelerate the transition to an electrified UK automotive industry. It aims to invest up to GBP 850 million in developing a high-value, end-to-end electrified automotive supply chain in the UK. The fund supports key technologies such as batteries, electric machines and drives, power electronics, fuel cells, and the upstream supply chain for these technologies. Businesses can apply through the Expression of Interest (EOI) competition for capital-focused investment projects, and the ATF team provides customized support for inward investors. The UK upstream supply chain for electrified vehicle technologies represents a significant investment opportunity, valued at least GBP 24 billion.

Notable projects funded by the ATF related to critical minerals include:

Pensana's saltend project

Pensana's Saltend Project involves the development of a rare earth processing facility by Pensana Plc. The groundbreaking ceremony for this project was held on July 22, 2022. Supported by the Automotive Transformation Fund (ATF), the facility is being established at Saltend Chemicals Park in East Yorkshire. This facility aims to process rare earths, which are vital for manufacturing electric vehicle motors and wind turbine generators, contributing significantly to the UK's green industrial revolution.

Green Lithium's refinery project

Green Lithium's Refinery Project focuses on the construction of the UK's first large-scale lithium refinery by Green Lithium. The project secured a grant on April 20, 2022, from the ATF Feasibility Study scheme, amounting to GBP 0.6 million. The refinery will produce battery-grade lithium hydroxide, reducing reliance on imports and supporting the UK's electric vehicle and sustainable energy storage sectors.

Weardale Lithium Limited's direct lithium extraction project

Weardale Lithium Limited secured a grant of approximately GBP 670,000 from the Advanced Propulsion Centre's Automotive Transformation Fund Feasibility Studies on June 17, 2022. This funding supports the development of sustainable lithium extraction from geothermal brines in County Durham, aiming to establish the effectiveness of direct lithium extraction technologies. The project is crucial for producing "green lithium" and supports the UK's net-zero ambitions by providing a domestic supply of lithium for the electric vehicle supply chain.

These initiatives underscore the ATF's commitment to developing a robust supply chain for critical minerals, essential for the UK's transition to a net-zero economy.

Official source: https://www.apcuk.co.uk/get-involved/funding/automotive-transformation-fund/