Professor Greenwood, CEO WMG centre HVM Catapult and Director of Industrial Engagement, comments:

"Today’s announcement, alongside the previously announced Ten Point Plan for a green industrial revolution, shows that the UK intends to take a leading role in decarbonisation, and to reinvigorate our economy in doing so. Delivering this will not be easy, but this clear and consistent policy is an essential first step.

“The decarbonisation of the transport sector will be a major contributor to delivering on this challenge. The current generation of EV technology performs well in passenger cars but remains too expensive for many people, and the cost of the battery is the biggest factor in this. To reduce costs, two things must happen – significant investment in fast charging infrastructure, meaning that battery sizes can be reduced, and sustained investment in R&D into the technology of batteries and their manufacturing processes.

“Beyond passenger cars there are great opportunities for the UK in micro-mobility (e-bikes, scooters, motorcycles and small vehicles), low carbon freight, rail, maritime and aviation. To ensure sustainability of the products we roll out today, we must also be investing in the technologies of recycling and re-use of their component parts – and these too will present industrial opportunities for the UK to secure material supply chains and minimise environmental impact.

“To ensure our innovation investment benefits Britain’s economy, we need a clear action plan to expand and strengthen our transport supply chain. This includes supporting skills and retraining, widening access to finance, improving the industrialisation of innovation and attracting manufacturing investment to the UK.

"Investment in the industries and people striving to make transport zero carbon is the only way that we will achieve a green transport future that is convenient for its users and achieves long term sustainability."