A new energy storage R&D centre for the advancement of electric and hybrid vehicle batteries will be based in the Midlands after a £13 million funding deal.

The new national centre will be based at the University of Warwick after £9 million of government funding backed up by £4 million from industry was agreed.

Business minister Michael Fallon said the centre will be created to capitalise on the growing electric and hybrid vehicle battery market, which has been estimated to be worth £250 million for the UK by 2020.

It is part of a wider government commitment to spend £400 million over the next four years to supporting electric cars and other ultra-low carbon vehicles.

Mr Fallon said: “I’m pleased to announce this joint Government and industry project to develop an energy storage R&D centre at the University of Warwick.

“It will put the UK in a much stronger, competitive position to capitalise on a growing worldwide market for low carbon vehicles, alongside other world leaders in the field including the United States, Japan and Germany.

“This £13 million facility will help accelerate the development of battery cells for the next generation of vehicles, is a vital investment in the future of the automotive sector.

“It complements over £5.5 billion that global vehicle manufacturers have committed to UK projects in the last 18 months.”

The Automotive Council Technology Group worked alongside Government to secure the funding for the new R&D centre at the university’s High Value Manufacturing (HVM) Catapult.