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The Welsh Government is investing a further £1m into a green innovation scheme.

The Ford Low Carbon Vehicle Transformation Fund, which is administered by the Welsh Government, was launched in 2020 by the Ford Motor Company.

This is the third round of funding for the scheme, with the money set to be invested before the end of 2024.

One of the first projects to be funded through the scheme is a project being led by research and development firm Deregallera, which is based on Caerphilly’s Pontygwindy Industrial Estate.

The project involves the design of an alternative motor for electric vehicles that is less harmful to the global environment.

While electric motors have been in use for decades, it is the permanent magnet motor which performs the best. However, nearly 85% of the world’s reserves of the special materials needed for permanent magnet motors come from China.

But there are concerns over the sustainability of distributing finite ‘rare earth’ materials around the world, as well as potential issues that could come about from relying so heavily on one country.

Martin Boughtwood, managing director of Deregallera, said: “This project to create a high-efficiency, high-torque density motor without or with substantially fewer permanent magnets will add to our high-performance motor and inverter offerings, providing customers with a secure supply chain alternative solution if these sources become too costly or constrained.”

Wales’ economy minister, Vaughan Gething, said: “This is an important fund which will help to deliver our ambitious 2050 net zero commitments.”

He continued: “The Ford Low Carbon Vehicle Transformation Fund is an example of our flexible support for innovation. The Fund has already supported eight Welsh-based organisations and I am keen to extend the opportunity to others.

“This is a great example of government working with industry to create new green jobs in the industries of the future.”

Caerphilly’s Labour Senedd Member, Hefin David, welcomed the news and said: “I’m delighted to see this funding going to Deregallera, who are based in my constituency and are at the very forefront of this very fast-paced industry.  

“The work they do is vital in finding sustainable solutions to the climate emergency and to green vehicle innovation in Wales.”