Business secretary Greg Clark said the money would help to create the next generation of such vehicles, as provided for in the government’s industrial strategy.
Seven projects will share grants worth £62m from the Advanced Propulsion Centre, led by BMW, CNH Industrial, Ford Motor Company, Jaguar Land Rover, Penso Consulting, Westfield Sportscars and Williams Advanced Engineering.
Their activities include the development of a high power battery suitable for high-performance vehicles, a fuelling system for a concept gas tractor and technologies to reduce the weight and improve electrification in SUV vehicle platforms.
Another seven projects have won funding totally £16.7m from the Office for Low Emissions Vehicles to advance the development of ultra-low and zero emissions vehicle technologies.
These projects will be led by Equipmake, Ford Motor Company, Great British Sports Cars, Jaguar Land Rover, Ricardo Innovations, Romax Technology and Wrightbus.
Mr Clark insisted buyers would continue to get up to £4,500 off the cost of an ultra-low emission car, up to £2,500 off a hybrid, and £500 towards installing a home charge point.
He said: “Low carbon and driverless cars are the future and as a government we are determined through the industrial strategy to build on our strengths and put the UK at the forefront of this revolution."
The government also announced the 24 winners of the second round of its connected autonomous vehicles competition, who would share up to £31m, match funded by industry.
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