From:
Department for Business, Innovation, Science and Trade and The Rt Hon Jonathan Reynolds MP
Published:
8 October 2026
- Companies at home and in Germany will be supported to open up new partnerships – backed by leading German firms Allianz, Bosch, and Siemens.
- €20 million pot to see both countries teaming up on Quantum research – one of the defining technologies of our generation.
- New agreements to help build deeper partnership on defence and economic growth as Prime Minister touches down in Berlin.
British tech companies will be able to strike new deals which boost their bottom line, while communities are set to benefit from future, high-skilled jobs as part of a new tech agreement with Germany.
The deal comes as the Prime Minister visits Berlin today (Thursday 8th October), with both countries agreeing to open a new ‘Industrial Tech Corridor’. At its heart, will be a drive to help companies on both sides of the North Sea strike partnerships with one another – driving investment, new jobs, and the adoption of cutting-edge technologies like AI to boost productivity.
A flagship initiative under the Kensington Treaty – the UK-German bilateral friendship agreement – it’s being backed by some of Germany’s leading companies including Allianz, Bosch, RWE and Siemens. Building on the UK’s and Germany’s Strategic Science and Technology Partnership, it will connect industry leaders, tech companies and innovators from both countries – unlocking new ways for them to to work together and to harness the opportunities of AI and critical technologies.
When fully up and running, it will connect high-growth technology companies with major industrial partners and investors, helping them win new business and realise their scale-up ambitions.
Deepening the UK-Germany tech partnership further, both countries will also share a pot of some €20 (£17m) million to help accelerate joint research on Quantum – one of the defining technologies of the future.
Quantum computing is one of our most important drivers of growth, with the potential to add more than £200 billion and some 100,000 jobs to the UK economy by 2045. Today’s funding announcement also follows in the wake of the UK committing earlier this year to be the first country in the world to build large-scale Quantum computers on our shores by the early 2030s.
Secretary of State for Business, Innovation, Science & Trade, Jonathan Reynolds, said:
Today’s agreements are great news for British tech, businesses, and workers. They mean more jobs, more investment, and more innovations that will change lives.
We already work closely with Germany in key areas like AI and Quantum, and today lays a new foundation – combining the strengths of our businesses and innovators so people in both countries will benefit from for years to come.
This shared pot of Quantum funding will support projects in a range of areas – from quantum computing through to the technology’s use in financial services. It could also mean cutting-edge breakthroughs in areas like Quantum sensors – already transforming our understanding of conditions like epilepsy and dementia.
The partnership will help encourage greater adoption of the technology in both countries, helping companies scale and grow while also strengthening manufacturing and supply chains across Europe.
Dr. Karsten Wildberger, Federal Minister for Digital Transformation and Government Modernisation said:
Together with the UK, we’re building an ideal launchpad for AI companies to scale internationally.
The UK-German Tech Corridor will accelerate scale-ups to enter Europe’s most advanced AI ecosystems. This partnership represents an important step to strengthening our digital sovereignty.
Some of Germany’s and the UK’s biggest companies are already capitalising on the new agreements announced today.
Germany-based tech firm MicroAGI – a robotics research company headquartered in Munich – will expand their footprint in London, creating 180 new, high-paid jobs. Energy company Proxima Fusion will also expand their base in Culham, with the potential to quadruple their workforce at the site by 2028.
Quantexa meanwhile – the UK-based AI software company – is also committing to building a dedicated sovereign unit in Germany which will support the technology’s deployment in both countries.
As our second largest trading partner, Germany already contributes some £155 billion to the UK economy.
Last month, the UK and Germany also launched a joint funding call worth £2.4 million to support innovative R&D projects. Focusing on clean energy, life sciences and engineering biology, it will see research teams from both countries partnering up to bid for up to £350,000, developing new ideas which could then lead to new products and services than benefit hardworking people.
Today’s announcements will now provide a platform to capitalise on our shared expertise in science, innovation, and technology to deliver further growth and improve the lives of people in both countries.
Notes to Editors
- The UK’s portion of the Quantum funding announcement comes from the Office for Quantum’s budget via Innovate UK.
Dr. Tanja Rueckert, Member of the board of management and Chief Digital Officer at Robert Bosch GmbH said:
Bosch is pleased to support the UK-Germany Industrial Tech Corridor and its ambition to deepen technology collaboration between the UK and Germany.
Alexander Fitzgerald, CEO & Founder Isembard said:
Manufacturing is the foundation of Europe’s security and prosperity, and the UK and Germany have more to gain than anyone from rebuilding our manufacturing capacity together. German engineering sets the global standard for precision, while demand for components across defence, aerospace, and energy is outpacing what Europe’s factories can deliver.
Isembard is joining the Corridor because AI-powered production can close that gap at speed. We want to bring our technology and factory network to German partners and help build sovereign industrial capacity across Europe.
Philippe Sachs, President EMEA Nscale said:
German industry needs secure AI compute to meet its growing demands.
As a UK headquartered AI infrastructure company with a large European footprint, Nscale sees the Industrial Tech Corridor as a natural route to partner with industrial leaders and help ensure Germany and the rest of Europe has the AI capability it needs.
Vishal Marria, CBE, CEO, and Founder of Quantexa said:
The UK-Germany Industrial Tech Corridor marks a defining moment for European leadership in sovereign AI.
Sirma Boshnakova, Member of the Management Board, Allianz SE said:
At Allianz, we believe innovation creates value only when it moves beyond technology and improves people’s lives.
The UK-Germany Industrial Tech Corridor can help make that happen by connecting innovators, industry and policymakers to accelerate progress and deliver impact at scale.
Markus Krebber, CEO RWE AG, said:
In the Age of Electricity, resilient energy systems are a decisive foundation for industrial competitiveness. As the UK and Germany deepen cooperation on AI and critical technologies, reliable, affordable and secure electricity will be essential to drive innovation, investment and growth.
The UK-Germany Industrial Tech Corridor is an important initiative to strengthen trusted collaboration between our two countries and support long-term economic resilience and technological leadership.
As a long-term investor in both markets, RWE looks forward to contributing its expertise and helping deliver the infrastructure and energy that underpins a competitive and resilient future.
Bercan Kiliç, CEO Microagi, said:
MicroAGI is excited to join the founding cohort of the UK–Germany Industrial Tech Corridor. The UK and Germany are home to some of the world’s strongest industrial companies, and our ambition is to help them lead the next industrial revolution through Physical AI. By bringing advances in AI and robotics into industrial operations, we can ensure they become more productive and globally competitive.
The Corridor is an opportunity to bring our countries’ industrial expertise and AI talent closer together, building partnerships that turn technological breakthroughs into growth for both economies.
Margherita Della Valle, Vodafone Group Chief Executive said:
The partnership will help encourage greater adoption of the technology in both countries, helping companies scale and grow by treating each others’ companies no less favourably than domestic providers, while also strengthening manufacturing and supply chains across Europe.
Elias Schneider, CEO, Codesphere, said:
I’m really excited to see Germany and the UK working more closely together on AI and critical technologies. We need to think about digital sovereignty on a bigger scale, and above all, together. Our individual markets can produce unicorns and even decacorns. But if we want to build global technology leaders that reflect our values, we need to connect those markets and give our companies the opportunity to grow across borders.
At Codesphere, we see a huge opportunity to build trusted European cloud and AI infrastructure together with our partners. This is about giving our industry and public institutions the autonomy to use these technologies on their own terms, while helping European innovation become globally competitive.
The UK-Germany Industrial Tech Corridor is exactly the kind of initiative that can help make this happen. By building strong partnerships and becoming customers of each other’s technologies, we can turn Europe’s potential into global success stories.
Bastian Nominacher, Co-founder and Co-CEO, Celonis, said:
The new Tech Corridor creates an essential foundation for deeper UK–German collaboration, bridging technology innovation with industrial demand under a shared regulatory and security framework. As a company deeply rooted in European values, Celonis is proud to support this flagship initiative under the Kensington Treaty. Bilateral cooperation is vital to strengthening industrial competitiveness, tech sovereignty, and economic resilience across both nations.
The UK is a strategic growth market for Celonis, and we are committed to providing UK organizations with the process context required to deploy effective Enterprise AI. With an expanding public sector footprint and established sovereign capabilities, we are proud to support the UK’s continued technological leadership.
Francesco Sciortino, Co-founder and CEO, Proxima Fusion, said:
Proxima Fusion is developing Europe’s first commercial fusion power plant, with British engineering playing a key role. Culham is home to some of the world’s strongest fusion engineering expertise, and expanding our team there reflects our long-term commitment to the UK.
We share an ambition with our UK partners: to turn scientific leadership into a new fusion industry, creating skilled jobs in both Britain and Germany.
Cedrik Neike, Member of the Managing Board and President Digital Industries, Siemens AG, said:
The greatest value of AI will come not from the technology itself, but from its application in the real economy. The UK and Germany have complementary strengths, bringing together leading technology innovation and deep industrial expertise.
Michael D. Lewis CBE, Chief Executive Officer, Uniper, said:
A secure, affordable, and competitive energy future depends on innovation at industrial scale. By bringing together technology, industry and government, the UK-Germany Industrial Tech Corridor can turn ambition into investment and practical solutions. Uniper is proud to support this initiative.
Dexin Luo, Global VP, Digital, AI & IT, Linde, said:
At Linde, we see significant value in connecting industrial expertise with the creativity and agility of high-growth technology companies. We are pleased to support the UK-Germany Industrial Tech Corridor initiatives that foster meaningful partnerships between industry and emerging innovators.
As industrial challenges become increasingly digital, partnerships between established industry leaders and emerging technology innovators will be critical to unlocking the next wave of productivity, resilience and sustainable growth.
Martin Merz, President, SAP Sovereign Cloud, said:
The UK-Germany Industrial Tech Corridor is an important opportunity to deepen collaboration between two of Europe’s leading economies. By bringing together industry, government and innovation, we can advance sovereign AI and digital capabilities while turning innovation into real-world impact.
SAP is committed to bringing its technology and expertise to this partnership to strengthen competitiveness, resilience and digital sovereignty on both sides.
Jacomo Corbo, CEO and Co-Founder, PhysicsX, said:
As a UK-headquartered company deploying frontier AI to organizations operating across some of the world’s most critical industries, we see enormous opportunity in bringing the UK and Germany’s strengths in technology, engineering, and advanced industry closer together.
The UK-Germany Industrial Tech Corridor can help accelerate the adoption of AI where it has the potential to create significant real-world impact, strengthening industrial competitiveness, advancing engineering innovation, and helping build the next generation of hardware. We’re excited for PhysicsX to be part of it.
Euan Blair, CEO and Founder, Multiverse, said:
The next decade of AI will be won by the countries that build the workforce capability and the institutions to use it, rather than by those who build the technology alone. Germany has the industrial strength, Britain has the AI ecosystem, and both have highly skilled workforces. What they need though is a workforce ready to put AI to work, and meeting that need will provide a huge jolt to economic growth.
Multiverse has committed to equipping 100,000 people in Germany with AI skills, and we will judge our success by better jobs and more productive businesses. But really addressing the scale of the challenge will require governments, employers, and educators all pulling in the same direction. The Industrial Tech Corridor is where Britain and Germany can do exactly that.
Every major industrial challenge, from AI compute to clean energy, comes down to materials. At CuspAI, we start with the properties industry needs and use AI to design the material, cutting development time from years to months. Germany has one of the strongest chemicals and manufacturing bases in the world, and that’s where many of these materials have the potential to accelerate innovation.
We’re joining the UK–Germany Industrial Tech Corridor to work with German partners on getting new materials from design to production faster.
ElevenLabs is a global company rooted in Europe, and that shapes how we build. We build AI that brings down barriers, whether between businesses and their customers, or the state and its citizens. This Corridor has much of the same spirit, bringing two nations closer together to power growth and opportunity, and we are delighted to be part of it.
Ed Jennings, CEO, Darktrace, said:
Darktrace is joining the UK–Germany Industrial Tech Corridor because closer collaboration can help both countries turn strengths in AI, cybersecurity and advanced industry into practical economic opportunities.
As AI becomes more embedded in industry, secure adoption will require a clear understanding of how systems behave in practice and the ability to identify new risks early. The Corridor can support secure innovation, strengthen supply chains and help trusted technologies scale across both markets.”
Girish Pancha, CEO, Matillion, said:
Matillion was built in the UK to help organisations get more value from their data, and Germany’s industrial sector is where that value is most needed.
With Maia, we’re helping data teams move faster with AI, and the Tech Corridor is a great platform to deepen partnerships with German businesses as they scale their AI ambitions. We’re proud to be part of this next chapter in UK-German and technology collaboration.
Dr. Michael Förtsch, Founder and CEO, Q.ANT, said:
Critical technologies will decide where industrial strength sits. AI is the most visible of them, and its next wave moves beyond language models into machines, factories and research labs, where the UK and Germany are strong. That wave needs far more computing power than today’s chips and energy systems can deliver.
Whoever makes computing far more efficient can lead. The UK and Germany can, if they have the courage to build it together. This Corridor is a good place to start.
Michel Boutouil, CEO, Polarise, said:
The UK and Germany are among the few places in Europe building AI infrastructure at real scale – which is exactly why a corridor between them matters. Europe’s constraint was never ambition or talent; it’s the physical layer – compute, power, connectivity – as well as the capital to build it. Whether capital nor capacity flows as it should: infrastructure is only bankable against secured demand, while the sovereign capacity our economies actually need carries risk the market won’t underwrite alone. A corridor changes that equation.
When data centres on both sides are connected – by fibre, and by customers operating in both markets – demand in one country makes capacity in the other bankable. That is how we move faster: governments unlocking land, power, planning and the financing frameworks; industry drawing on capacity it can rely on. Europe is competitive when running AI on our own soil is unremarkable, and resilient when that capacity is sovereign. Both are achievable this decade – if the UK and Germany build it together, starting now.
