The UK and Germany have announced a new Industrial Tech Corridor aimed at encouraging partnerships between companies in the two countries.
The deal, which builds on the existing Strategic Science and Technology Partnership, is being backed by some of Germany’s leading companies including Allianz, Bosch, RWE, and Siemens.
The aim is to connect industry leaders, tech firms, and innovators from both countries, allowing them to work together on AI and critical technologies.
"Together with the UK, we’re building an ideal launchpad for AI companies to scale internationally," said Germany's federal minister for digital transformation and government modernization, Karsten Wildberger.
"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."
The focus will be initially on AI and high-value industrial applications, with a first dedicated Tech Corridor roundtable convening CEOs of selected primes, AI scale-ups, and senior officials scheduled for later this year.
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The two countries will also share a pot of around €20 million to help accelerate joint quantum research. This will support projects in a range of areas, from quantum computing through to the technology’s use in financial services.
It could also lead to cutting-edge breakthroughs in areas such as quantum sensors.
This means cash for a further five research projects across Germany and the UK, making use of the existing bilateral quantum cooperation and increasing the number of funded projects to 10.
"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," said UK secretary of state for business, innovation, science and trade, Jonathan Reynolds.
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Following the deal, Germany-based tech firm MicroAGI, a robotics research company headquartered in Munich, will expand its footprint in London, creating 180 new jobs, while energy company Proxima Fusion plans to expand its base in Oxfordshire, hoping to quadruple its local workforce by 2028.
The UK-based AI software company Quantexa, meanwhile, is committing to building a dedicated sovereign unit in Germany which will support AI deployment in both countries.
Similarly, the two countries have also convened senior business leaders for a Regional Growth Forum, focused on fostering business-government collaboration, regional growth and innovation.
The plan is to develop a deeper regional dialog to be held in 2027, involving local and regional stakeholders.
"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," said Reynolds.