The UK and Germany have launched a new technology partnership aimed at boosting investment, creating jobs and helping businesses expand across Europe.
The Industrial Tech Corridor was announced as Prime Minister Andy Burnham visited Berlin on Thursday, with the agreement designed to connect high-growth technology companies with major industrial partners and investors in both countries.
The initiative is backed by German firms including Allianz, Bosch, RWE and Siemens, and forms part of the Kensington Treaty, the bilateral friendship agreement between the UK and Germany. It will focus on areas including artificial intelligence (AI) and other critical technologies, with the aim of helping businesses develop new products and scale internationally.
A joint €20m (£17m) funding pot will also support research into quantum technology, with projects expected to cover areas ranging from quantum computing to financial services and advanced sensors.
The UK government estimates quantum technology could add more than £200bn to the British economy and create around 100,000 jobs by 2045. The latest funding follows a commitment earlier this year to build large-scale quantum computers in the UK by the early 2030s.
Several companies have already outlined plans to expand their operations following the announcement. Munich-based robotics firm MicroAGI will increase its presence in London, creating 180 jobs, while energy company Proxima Fusion plans to expand its site in Culham, with the potential to quadruple its workforce there by 2028.
UK-based AI software company Quantexa has also committed to establishing a dedicated unit in Germany to support the deployment of its technology across both markets.
The agreement builds on existing commercial ties between the two countries. Germany is the UK’s second-largest trading partner, contributing around £155bn to the British economy. Last month, the two governments launched a separate £2.4m funding call for joint research and development projects focused on clean energy, life sciences and engineering biology.
Under that programme, research teams can bid for grants of up to £350,000 to develop new technologies and commercial applications.
The latest agreement comes as both countries look to strengthen industrial capacity and improve competitiveness in emerging technologies. Supporters of the corridor have highlighted opportunities to connect British technology firms with established German manufacturers, potentially helping smaller companies secure customers and investment as they expand.
Bosch said the initiative could help bring new technologies into practical applications more quickly, while energy group RWE pointed to the importance of reliable and affordable electricity in supporting industrial growth.
The partnership also reflects growing interest in developing European capabilities in AI infrastructure and advanced manufacturing. Companies involved in the corridor have highlighted potential applications across energy, defence, aerospace and industrial production.
The UK government said the agreements would provide a platform for further cooperation in science and technology, with the aim of supporting economic growth and strengthening supply chains across Europe.
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.”
Dr. Karsten Wildberger, Federal Minister for Digital Transformation and Government Modernisation added: “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.”
