No company will profit from the project, with the Government only underwriting the costs.
Smiths’ paraPAC ventilator is already used by the NHS so can be put to work immediately.
It is said to be well-suited to the current crisis because it can run without electricity, meaning it can be used in hospital corridors where there may be no plug sockets.
The Penlon design is getting a minor tweak first before going into production.
Ventilator Challenge UK is one of seven groups working on ventilators. Dyson and Babcock are also working on the plan.