Strip Tinning Holdings (AIM:STG) has been awarded a £3 million grant under the government's DRIVE35 funding programme, delivered through the Advanced Propulsion Centre UK and Innovate UK.
The AIM-listed company supplies specialist connection systems to the automotive sector, including Cell Contacting System technology used in electric vehicle battery packs. The grant, combined with the company's own funding, is intended to scale UK manufacturing capability and build specialist skills to meet expected demand from existing contracts in 2027 and beyond.
Release of the funding depends on Strip Tinning meeting project start-up requirements and receiving a formal grant offer letter.
Ian Constance, chief executive of the Advanced Propulsion Centre UK, said the programme was "supporting businesses to move promising technologies to commercial deployment and manufacturing at scale."
DRIVE35 forms part of a wider £4 billion government programme aimed at strengthening the UK's automotive design and manufacturing base.
News Intelligence what this means for the company
Strip Tinning has secured £3 million in government funding to expand UK manufacturing capacity ahead of anticipated demand growth from 2027 onwards, driven by existing contracts for its Cell Contacting System technology used in EV battery packs. The grant is conditional on meeting project start-up requirements and receiving a formal offer letter, but signals both validation of the company's technology and de-risking of the capital investment needed to scale production.
The funding materially reduces Strip Tinning's capital burden for the capacity expansion required to fulfil 2027+ demand from existing contracts, improving cash preservation and return on equity. However, execution risk remains: the company must meet grant conditions, and realizing the anticipated demand growth depends on those contracts materializing as expected.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
