Automotive Transformation Fund (ATF) – 2025 Expression of Interest

Programme:APC

Awards:Minimum £1m

Geographical Scope:national

Beneficiaries:private

Key Features:Access large-scale funding to accelerate the UK’s shift to zero-emission automotive supply chains.

Key Features: ATF

Funding type: Grant (capital and R&D)
Funding available: Multi-million; project minimum £1m
Eligibility: UK-registered businesses of all sizes, including SMEs
Scope: Batteries, fuel cells, motors, power electronics, and raw materials
Deadline: 8 January 2025 for current EOI round
Funder: Advanced Propulsion Centre (APC) with Innovate UK

Scope

ATF is not limited to narrow technology areas; it covers the entire electrified automotive supply chain. Eligible activities include:

Battery innovation and manufacturing
Development and scale-up of cell chemistry, module and pack assembly, and integration into manufacturing lines. Proposals may cover gigafactory scale investment, cathode and anode processing, or recycling of critical minerals.
Electric motors and drives
R&D and capital projects in advanced magnet design, winding technologies, integration of motor and inverter systems, and scaling of manufacturing processes to volume.
Fuel cell technologies
Development of fuel cell stacks, components and integration into vehicle platforms. Includes hydrogen storage, balance of plant, and validation of low-cost manufacturing approaches.
Power electronics
Scale-up of wide bandgap semiconductors (SiC and GaN), inverters, converters, and controllers. Focus on projects that increase UK manufacturing capacity and reduce reliance on imports.
Raw material supply and refining
Establishing UK capability in refining lithium, cobalt, nickel, and other critical minerals; recycling and circular economy solutions to secure supply resilience.

Projects must demonstrate scale-up potential, measurable carbon impact, and alignment with the UK’s commitment to phase out petrol and diesel vehicles. ATF is not intended for small feasibility studies; it backs large, commercially significant investments.

Funding and Costs

Minimum project size: £1m. In practice, most successful projects exceed £5m.
Funding pot: £850m programme total. Funds are allocated on a competitive basis.
Grant rates:
- For R&D, up to 70% of costs for SMEs (lower for larger businesses).
- For capital investment, rates vary based on company size, location, and nature of expenditure.
Eligible costs:
- Personnel, contractors, materials, consumables.
- Capital equipment and tooling essential to electrified vehicle production.
- Site preparation, manufacturing line upgrades, and scale-up activities.
Match funding: Applicants must demonstrate industry co-investment to leverage government support.

How to Apply

Stage 1: Expression of Interest (EOI)
A concise submission through the Innovation Funding Service. Applicants outline project objectives, technology area, estimated costs, and anticipated UK impact.
Stage 2: Full application (by invitation)
Selected EOIs are invited to submit a full application. This requires:
- Detailed technical and commercial case
- Financial forecasts and co-investment commitments
- Evidence of supply chain integration and exploitation strategy
- Environmental and carbon impact analysis

FI Group can assist by:

Benchmarking your project against successful ATF bids.
Structuring the commercial model and costings.
Coordinating supply chain partners to strengthen the consortium.
Ensuring your application aligns with APC’s strategic investment priorities.

Why Apply

For SMEs, ATF represents a rare opportunity to partner with major OEMs and play a role in shaping the UK’s electrified future. It provides access to substantial co-funding, enabling businesses to:

Scale production technologies faster than would be possible independently.
Reduce financial risk of capital-intensive investments.
Build credibility with OEMs, Tier 1s, and government stakeholders.
Secure a long-term role in domestic supply chains, positioning for export growth.

ATF Overview

The Automotive Transformation Fund (ATF) supports large-scale industrialisation projects that strengthen the UK’s electrified vehicle supply chain. In 2025, new Expression of Interest (EOI) calls are open, offering UK businesses, including SMEs, the chance to secure funding for capital investment and late-stage R&D.

ATF is central to the UK’s net-zero strategy, providing co-funding for projects that enable domestic capability in batteries, electric motors, fuel cells, and other essential technologies.

Eligibility

The ATF is open to:

UK-registered businesses of all sizes, from SMEs to OEMs and Tier 1 suppliers.
Collaborative supply chain consortia, where SMEs partner with manufacturers, universities, or RTOs to build integrated UK capability.
Foreign-owned companies with UK subsidiaries are eligible provided the funded activity and exploitation occur in the UK.

Applicants must show:

A credible business case with measurable UK economic benefit.
Plans for commercialisation and long-term viability beyond the funded period.
Evidence of financial sustainability and capacity to co-invest alongside government.

Deadlines and Dates

Current EOI deadline: 8 January 2025.
Further rounds: Regular EOIs through 2025, typically quarterly. Successful EOIs progress to full application, where detailed project and financial plans are required.

Assessment

Applications are assessed on:

Strategic fit with UK industrial strategy and net-zero goals.
Scale and impact: Does the project materially strengthen the UK’s EV supply chain?
Technical excellence: Is the innovation credible, novel, and scalable?
Commercial and financial viability: Are the forecasts realistic, and is co-investment secured?
UK benefit: Contribution to GDP, job creation, supply chain resilience, and decarbonisation.

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