UK Government invests in Dana electric vehicle plant to strengthen automotive sector

13 July 2025

The Advanced Propulsion Centre UK (APC) applauds the UK government’s announcement today, 13 July 2025, of substantial backing for Dana UK Axle Ltd, a leading global force in drivetrain and e-Propulsion systems. This initiative aims to boost the production of full electrification products at Dana’s historic plant in Witton, Birmingham, thereby reaffirming the UK’s commitment to leading the charge in zero-emission vehicle manufacturing.

This investment is facilitated through the Department for Business and Trade’s Automotive Transformation Fund (ATF), which is delivered by the APC, and represents a further critical step in the UK’s transition to zero-emission vehicles and towards a net-zero automotive supply chain.    

The strategic investment will transform Dana’s historic production site, securing its future as a state-of-the-art facility for the manufacture of vehicle electric drive units (EDUs). Dana’s investment will ensure skilled jobs in the region, supporting over 100 direct jobs over the long term. This aligns with the Government’s stated desire to protect the UK’s national automotive sector and to put the country at the very centre of the global automotive decarbonisation map.

Julian Hetherington, Automotive Transformation Director at the APC, said:

“This is incredibly significant and puts the UK in an enviable position in the global automotive sector. I’m delighted that the ATF has been able to support Dana in their investment in new facilities to help transition their Birmingham Witton plant from production of conventional driveline components to these new ultra-high performance electric drive units, creating secure and highly skilled jobs in this area and building on the longstanding foundations of skills, capability, and the company’s operations on this site.

“The UK is uniquely positioned to leverage its highly productive capabilities in powertrain and drivelines – where it remains a significant exporter of these technologies – to transition towards new products serving the electrified vehicles that will support our drive to net zero.

“Dana have seen this opportunity, and I am delighted they have chosen the UK to grow this capability.”

“The investment will enable production of EDUs and significantly boost the UK power electronics, machines, and drives (PEMD) supply chain.”

The ATF capital programme has attracted significant investments from major companies, such as Ford, Johnson Matthey, Nissan, and Tata, as part of our developing electric vehicle supply chain.