Why Now?

Low Complexity EV architecture …with Net Zero Objectives, Green Aluminium, Battery 2nd life & Recycling…Now is the best time…

Indications of Scottish Government Interest in Funding ScotVan-Like Projects:

There’s strong and recent evidence that the Scottish Government, through agencies like Scottish Enterprise and Transport.

Scotland, is actively interested in funding innovative, net-zero aligned manufacturing projects—particularly in the electric vehicle (EV) and sustainable transport sectors. This aligns perfectly with ScotVan’s focus on a Scottish-made, 20-year-life electric light commercial vehicle (eLCV) emphasizing circular economy principles, job creation, and exports.

The government’s 2025–2030 priorities include decarbonizing transport (aiming for 100% zero-emission new vehicle sales by 2030), supporting local manufacturing, and leveraging grants for startups in green tech.

  • Scotland’s net-zero transport strategy explicitly calls for “a just transition” in vehicle production and infrastructure, with £100m+ allocated in 2025–26 for EV-related initiatives.
  • Only ~5,000 <1t electric vans were sold in 2024 → by 2030 the market will need 80,000–100,000 electric units per year to meet net-zero fleet targets. ScotVan targets 5 % of this volume from 2028. See Chart 1 below.
  • Chart 2 below summarises the TAM: Parcel & courier fleets alone need >15,000 new eLCVs every year – ScotVan’s sweet spot.
  • Chart 3 shows the production ramp-up timeline coinciding perfectly with the legislated green energy transition.

In summary of the three charts above, they tell the entire market story visually:

  • There is a massive electrification gap
  • Huge named fleets are desperate for exactly our vehicle
  • 5,000 units/yr is a tiny but very profitable slice

…And there is funding support to facilitate the legislative direction of travel….

While much funding targets charging infrastructure and vehicle purchases/loans, there’s clear appetite for manufacturing innovation, especially Scottish-based startups creating jobs and reducing imports.

key indicators from 2025 sources, including grant programs, policy commitments, and examples: Direct Funding Programs for Green Manufacturing and EV Innovation.

  • Scottish Enterprise’s Digital Solutions for Energy Transition and Manufacturing Call (Open until July 31, 2025): Up to £50,000 per project (non-dilutive, under UK Minimal Financial Assistance rules) for digital/green tech innovations in energy transition and manufacturing. This pairs startups with industry challengers (e.g., energy firms) for proof-of-value projects completed by March 2026. ScotVan’s hemp-composite panels, quick-swap batteries, and ISO 14067 lifecycle design would fit as a “circular manufacturing” solution. A webinar was held in July 2025, with projects starting September 2025. scottish-enterprise.com +1
  • Workplace Transformation Support (Scottish Enterprise, 2025): £500,000 total match-funded grants for manufacturing/clean energy sectors, focusing on skills, AI/robotics, and net-zero upgrades. Targets high-impact projects creating jobs—ideal for ScotVan’s 180 direct roles and plant fit-out. scottish-enterprise-mediacentre.com
  • Advanced Net Zero Innovation Centre (ANZIC) Launch (2025): Scottish Enterprise co-funded a £12m facility at the University of Strathclyde for net-zero manufacturing innovation, including EV-related tech like advanced materials and circular processes. This signals strong support for Scottish-led EV production R&D. scottish-enterprise-mediacentre.com

2. Broader Net-Zero Transport Funding with Manufacturing Ties

  • £20m Electric Vehicle Loans (2025–26 Budget): Interest-free loans up to £150,000 for businesses buying zero-emission vans/HGVs, plus a new “Used Electric Low-Carbon Vehicle Loan for Vans.” While purchase-focused, this ties into manufacturing by prioritizing Scottish supply chains for fleet electrification (e.g., Royal Mail/Evri pilots). Total EV support since 2011: £230m, saving 230,000 tonnes CO₂e—ScotVan’s 99 tonnes saved per vehicle would amplify this. transport.gov.scot +1
  • Electric Vehicle Infrastructure Fund (EVIF, £30m Total, 2025–2030 Rollout): £7m+ awarded in 2025 to councils (e.g., Aberdeen, Highland) for EV charging networks, with private sector co-investment. Emphasizes “just transition to net zero” via Scottish manufacturing—ScotVan’s battery second-life and quick-swap tech could integrate here for fleet support. transport.gov.scot +1
  • Plugged-in Communities Fund (£4m, 2025 Round Open): Grants for community transport operators to buy/lease electric vans (including wheelchair-accessible) and chargers. Over £4.2m awarded since 2021 for 64 vehicles—extends to manufacturing pilots for affordable, local EVs. greenfleet.net
  • Scottish Budget 2024–25 (Annex A.4 – Transport, Net Zero & Just Transition): Commits to “rolling programme” of EV/bus funding, rail electrification, and active travel, with cross-government coordination for net-zero manufacturing. Includes £650m UK-wide Plan for Change, but Scotland prioritizes local production for 20% car km reduction by 2030. gov.scot

3. Policy and Strategic Signals

  • Net-Zero Transport Vision (Updated 2025): Scottish Government targets phasing out petrol/diesel sales by 2030 (ahead of UK 2035), with £65m+ invested in charging since 2011 (now 6,000+ points, +49% growth in 2024). Explicit call for “Scottish-led innovation” in vehicle production to reduce imports and create jobs—mirrors ScotVan’s 5,000 units/year export model. gov.scot +1
  • Converge Programme Expansion (2025): Scottish Enterprise partnered on £1.26m funding for university spinouts, awarding £400k+ to 2025 winners in green tech. Supports 450+ startups with 86% survival rate—ScotVan’s founder-led model with 30 years’ experience would qualify. scottish-enterprise-mediacentre.com +1
  • Grangemouth Jobs Prioritisation Scheme (2025): New clause in Scottish Enterprise grants prioritizing manufacturing projects creating high-skill jobs in net-zero sectors like clean energy/EVs. insider.co.uk

4. Examples of Similar Funded Projects (2025)

  • North West Scotland EVIF Project (£3.1m Grant): Funds comprehensive EV networks with manufacturing ties for just transition—could extend to ScotVan pilots in rural exports. transport.gov.scot
  • ANZIC Facility (£12m, Scottish Enterprise Co-Funded): Supports EV materials innovation and circular manufacturing at Strathclyde University—direct parallel to ScotVan’s hemp composites and battery reuse. scottish-enterprise-mediacentre.com
  • IONITY EV Charging Investment (£40m Private + Public Match, 2025–28): £20m government-leveraged for Scottish networks, emphasizing local production integration.