New electric delivery vehicle aims to cut congestion and emissions in cities
A UK electric vehicle start-up aiming to transform last-mile deliveries has secured ÂŁ20 million in backing as it pushes towards commercial launch.
ELM Mobility announced a major new development programme supported by ÂŁ10 million in government funding, alongside private investment led by Barclays Climate Ventures.
The company is developing a compact battery electric delivery vehicle designed to cut logistics costs, reduce emissions and ease congestion in towns and cities.
Alongside the vehicle itself, ELM plans to create a wider delivery ecosystem featuring integrated digital tools, services and operational support for logistics businesses.
The government funding forms part of the UK’s £4 billion DRIVE35 programme, delivered through the Department for Business and Trade in partnership with the Advanced Propulsion Centre UK and Innovate UK.
The remaining investment comes from ELM Mobility and its development partners, which include Prodrive, Astheimer Design, Electrified Motors, Nyobolt, CENEX and Toyota Motor Manufacturing UK.
ELM Mobility was originally launched in 2023 as a joint study between Prodrive Advanced Technology and Astheimer Design before becoming a standalone business focused on urban delivery solutions.
The company has already developed a prototype vehicle described as compact, agile and capable of carrying a larger payload than a small van.
Its next stage of development will focus on refining the design ahead of customer trials planned for 2027 and preparing the platform for full-scale production.
Future work will include developing a new driver-focused cab, improving vehicle efficiency through digital modelling and creating a lightweight platform designed for cost-effective UK manufacturing.
The company is also building a “digital twin” of delivery operations to help logistics firms reduce operating costs and improve efficiency.
ELM Mobility chief executive Mark Stringer said the company’s goal was to create “the best-in-class urban last-mile delivery vehicle”.
“Supported by the APC, this collaboration brings together leading UK capability across design, engineering, and the BEV supply chain,” he said.
Mr Stringer said the project had been shaped by “the practical realities of manufacturing and customer use” and would deliver “a genuinely game-changing solution for last-mile logistics”.
He added that the company’s focus on delivery efficiency would help operators reduce costs while meeting decarbonisation targets and easing pressure on urban areas.
Steven Poulter, head of Barclays Climate Ventures, said ELM Mobility was addressing “one of the toughest challenges in logistics”.
“This funding marks an important step towards bringing their product to market,” he said.