AUTOMOTIVE TRANSFORMATION FUND (ATF)

Rating: The current Delivery Confidence Assessment reflects the transition of ATF from an active award programme to a delivery and stewardship phase, managing a complex portfolio of high-value, long-term capital projects. Key drivers of the assessment include: the complexity and scale of funded projects, many of which involve multiple commercial partners and long delivery timelines; the ongoing need for robust monitoring, assurance, and contractual management of legacy commitments; and residual delivery risks associated with project execution, market conditions, and supply chain dependencies. Additionally, programme delivery has been impacted by organisational changes and resourcing pressures within DBT, which have required strengthening of PMO capability and oversight to maintain delivery confidence. The Department has taken steps to mitigate these risks through enhanced governance, strengthened programme management arrangements, and continued senior oversight. Overall, the programme remains deliverable, with a focus on ensuring effective oversight of existing commitments and managing risks to delivery and benefits realisation.

Schedule: Compared to financial year 24/25-Q4, the project's end-date at 25/26-Q4 remained the same at 31/03/2025. All future provision at that point moves into DRIVE35.

Cost: Compared to financial year 24/25-Q4, the project's departmentally agreed Whole Life Cost at 25/26-Q4 increased slightly from last year's WLC £671 to £675m.

Source: NISTA Major Projects Annual Report 2025-26 (data)

Rating: Compared to financial year 23/24-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 24/25-Q4 remained at AMBER. This is primarily due to the following factors‚ ATF funding has already helped secure key investments, including Nissan’s £2 billion investment to produce two new electric vehicle models in Sunderland building on the £1 billion electric vehicle hub announced by Nissan and their battery partner AESC in 2021,Ford’s investment of £380m in the production of electric power units at Halewood, Johnson Matthey’s investment of more than £60 million in Hertfordshire to develop hydrogen technologies.  Alongside this, significant resourcing challenges impacted the programme’s ability to meet its objectives including a lack of capacity to onboard new ATF cases. The current programme ended-March 2025 but as part of the Advanced Manufacturing Plan, DBT will announced a £2bn of capital and R&D funding to 2030, building on the work of the Automotive Transformation Fund and the Advanced Propulsion Centre R&D programmes.

Schedule: Compared to financial year 23/24-Q4, the project's end-date at 24/25-Q4 remained at 31/03/2025. This is primarily due to the following factors‚ The Automotive Transformation Fund is funded until March 2025. However, as part of the Advanced Manufacturing Plan, we have announced over £2bn of capital and R&D funding to 2030, boosting the UK’s competitiveness and unlocking strategic investments in our automotive industry. This funding will be delivered via DRIVE35, an ambitious programme building on the work of the Automotive Transformation Fund and the Advanced Propulsion Centre R&D programmes, ensuring continuity in HMG support.

Cost: Compared to financial year 23/24-Q4, the project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) remained at 671. This is primarily due to the following factors‚ The baseline costs have been updated to reflect the funding awarded to the Automotive Transformation Fund until March 2025.

Source: NISTA Annual Report 2024-25 (data)

Rating: Compared to financial year 22/23-Q4, the Senior Responsible Owner's Delivery Confidence Assessment rating at 23/24-Q4 remained at Amber. This is primarily due to the following factors. As of March 2024, the total value of in principle and final offers made under the ATF is over 550 million. Our approach has already attracted landmark projects across the country including Tata's investment of over 4 billion in a new 40GWh gigafactory and Ford's investment of 380m in the production of electric power units at Halewood. In FY23/24 the ATF surrendered programme budget. Alongside this, significant resourcing challenges impacted the programme's ability to meet its objectives including a lack of capacity to onboard new ATF cases.The current programme will end-March 2025 but as part of the Advanced Manufacturing Plan, DBT has announced 2bn of capital and R&D funding to 2030, building on the work of the Automotive Transformation Fund and the Advanced Propulsion Centre R&D programmes. Furthermore, the ATF is currently in the process of implementing streamlining proposals to improve the efficiency of the ATF process.

Schedule: Compared to financial year 22/23-Q4, the project's end-date at 23/24-Q4 remained schedule to finish on 2025-03-31. This is primarily due to the following factors. The Automotive Transformation Fund is funded until March 2025. However, as part of the Advanced Manufacturing Plan, we have announced over 2bn of capital and R&D funding to 2030, boosting the UK's competitiveness and unlocking strategic investments in our automotive industry. This funding will be delivered via Auto2030, an ambitious programme building on the work of the Automotive Transformation Fund and the Advanced Propulsion Centre R&D programmes, ensuring continuity in HMG support.

Cost: Compared to financial year 22/23-Q4, the project's departmental-agree Whole Life Cost at 23/24-Q4 decreased from 747m. to 671m. This is primarily due to the following factors. The baseline costs have been updated to reflect the funding awarded to the Automotive Transformation Fund until March 2025.

Source: IPA Annual Report 2023-24 (data)