Ford will begin testing of a battery-powered Ford Focus fleet in the UK from early 2010.
The cars are being developed using funding from the government's Technology Strategy Board, which promotes industry-led projects that reduce carbon dioxide.
In total, the government has today announced £25 million has been awarded to eight companies, including Ford, with the goal of getting around 340 electric demonstrator vehicles on UK roads in the next six to 18 months.
The electric Ford Focus fleet is being set up by Ford of Europe and will be adapted to use technology that has already been evaluated in Ford's Tourneo Connect BEV (Battery Electric Vehicle) concept.
The full BEV powertrain showcased in the Tourneo Connect Concept was developed in collaboration with Smith Electric Vehicles, which is a specialist converter of commercial vehicles for electric useage.