Funding worth £38 million to develop batteries for electric vehicles (EV) has been granted.
AGM Batteries and Faradion will use the cash from Innovate UK for the project which aims to create sodium-ion batteries to power cars by 2025.
They are expected to be around 30% cheaper than conventional lithium-ion cells and reduce the cost of EVs.
The companies hope to deliver a working prototype by 2018.
Faradion’s CEO, Francis Massin, said: “This project will help the automotive industry to develop a more stable, sustainable and cost-effective solution to electric vehicle power than is currently available.”
A new £2 million competition to encourage more businesses to switch to hydrogen-fuelled electric vehicles (EVs) has also been launched.