The Prime Minister used a speech in Birmingham on Tuesday to pledge a £106 million funding boost for research and development in the sector which also covers new batteries and low-carbon technology.

Mrs May told the UK’s first-ever Zero Emission Vehicle Summit the Government had an “ambitious mission” to ensure Britain is a leader in the green technology field.

The PM said “I want to see Britain, once again, leading from the front and working with industries and countries around the world to spearhead change. These measures will drive the design, use, uptake and infrastructure necessary for cleaner, greener vehicles

That is why I have set this country an ambitious mission. To put the UK at the forefront of the design and manufacturing of zero-emission vehicles and for all new cars and vans to be effectively zero-emission by 2040.

Already we are taking significant strides forward. Our electric UK-manufactured cars account for one in five sold in Europe. Our batteries are among the best in the world.

“And our Road to Zero Strategy is the most comprehensive plan globally – mapping out in detail how we will reach our target for all new cars and vans to be effectively zero-emission by 2040 – and for every car and van to be zero emission by 2050.”

She added: “Today we have provided over £100 million of funding for innovators in ultra-low emission vehicles and hydrogen technology. With a further £500 million of investment from key industries in this sector, creating over 1,000 jobs across the UK. So we are driving change, further and faster.

“Together, all these measures will drive the design, use, uptake and infrastructure necessary for cleaner, greener vehicles – and in doing so, it will help us drastically reduce a major contributor to our global warming emissions, as we seek to meet the Paris climate change agreement.”

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