Market Data 
- The UK government recently announced a multimillion-dollar investment in advanced manufacturing.
- As part of this initiative, the Aerospace Technology Institute program will provide support for R&D projects through 2030.
- The funding is poised to benefit innovative small businesses across the industry.
The UK government has announced a £975 million investment in advanced manufacturing to accelerate the development of cleaner and more sustainable air travel technologies. This commitment extends the Aerospace Technology Institute (ATI) program until 2030, which supports mid-stage research and development projects led by industry.
Among the projects awarded funding are an all-electric vertical take-off aircraft, electric engines that can be retrofitted to existing planes, and a clean metal-casting innovation. The government’s collaboration with industry aims to bring cutting-edge technologies closer to reality, paving the way for zero-emission aircraft and a future of environmentally friendly air travel.
“Government is focused on the rapid development of technologies in a way that maintains the benefits of air travel, whilst maximizing the opportunities that decarbonization can bring to the UK,” said Paul Griffiths, head of Aerospace at the UK Department for Business and Trade.
Investment is helping to achieve liftoff
The results of the ATI program are already taking flight. In a world-first, ZeroAvia’s hydrogen fuel cell-powered 19-seater aircraft took its maiden flight in 2023. The Dornier 228 is retrofitted with a full-size prototype hydrogen-electric powertrain on the left wing of the aircraft. In the testing phase, it completed ten flights lasting up to 22 minutes in duration.
ZeroAvia is working toward certifying its first powertrain for up to 20-seat aircraft by the end of 2025 and an engine for up to 80-seat planes by 2027. This will lead to the construction of state-of-the-art manufacturing facilities and generate high-skilled green jobs.
“These new zero and low-emission propulsion technologies will be the solutions adopted by the global aviation industry over the next decades, and the regions that establish advanced manufacturing capability in this area will likely have a significant industrial strategy opportunity,” Dominic Weeks of ZeroAvia said.
Another recipient of the ATI program funding is Vertical Aerospace, the UK’s pioneer of electric aviation. The company is developing a fully battery-powered, vertical take-off and landing aircraft called the VX4. It will produce zero operating emissions, reduce congestion, and help people travel quickly between and within major cities. “For many people, this type of aircraft will be the first zero-emissions flight they experience,” said Stuart Simpson, chief financial officer at Vertical Aerospace.
In March 2024, Vertical received an additional £8 million grant to help develop its propeller technology. The project is the third awarded to Vertical by ATI and brings its total UK government grant funding to £37 million. “This award demonstrates a significant vote of confidence in Vertical’s potential to lead the next generation in aviation,” Simpson said.
Smaller businesses reap the benefits of funding programs
A key focus of the program is funding projects by SMEs. Headquartered in North Yorkshire in the UK, Sylatech received grant funding from ATI for its Digital Liquid Metal Manufacturing project. Sylatech’s £3.4 million project, carried out in collaboration with Cranfield University, Alloyed Limited, and the University of Sheffield, aims to produce ultra-high-quality aluminum components with exceptional performance and manufacturing consistency that surpass current technologies.
Aluminum shape casting remains heavily under-utilized in the aerospace industry, primarily due to concerns over process and product consistency and mechanical performance. Sylatech is trying to change that by enhancing the properties of recycled aluminum, known as “post-consumer aluminum.” Using the company’s metal casting technology MeltX, the project focuses on enhancing aluminum’s mechanical characteristics. By doing so, Sylatech aims to achieve two significant outcomes: reducing the weight of products made from this metal and increasing their durability during use.
The novel aluminum casting process will also drive aluminum circularity in line with net zero sustainability targets. “The intent is that our technology innovation will play a significant role in the development of sustainable manufacturing,” said Gordon Gunn, Sylatech’s commercial director. “When fully operational during 2024, MeltX will deliver new lightweight and sustainability opportunities for aerospace, automotive, and recycling industries.”
The UK’s long-term vision for civil aerospace is developed through the Aerospace Growth Partnership (AGP), which is a strategic partnership between the UK government, industry, and academia to secure the future of UK Aerospace. The AGP strategy “Destination Net Zero,” launched at the Farnborough International Airshow 2022, seeks to reduce the climate impact of aviation and secure the UK’s position as a world leader for the next era of flight.
“The AGP’s mission is to make the UK a world leader in the development and manufacture of the most sustainable aircraft technologies,” Griffiths said, “where globally competitive businesses, supported by a strong national ecosystem, provide high-quality jobs and growth throughout the UK.”
Find out more about the UK Advanced Manufacturing Plan.
This article was created by Insider Studios with the UK’s Department for Business and Trade.
