Contracts for Innovation: Automotive Resource Efficiency Grant – 2025 Competition

Programme:Innovate UK KTN and Zenzic

Awards:Up to £3m

Geographical Scope:national

Beneficiaries:public

Key Features:Up to £3 million in R&D funding for UK innovators improving sustainability and resource efficiency in the automotive sector.

Key Features

Up to £3 million grant funding, including VAT, available via pre-commercial contracts
Funded by Innovate UK KTN and Zenzic, supported by the Advanced Propulsion Centre (APC)
Targets net-zero and circular automotive supply chains
Open to UK-based businesses with validated prototypes or innovations
Supports demonstration or development of resource-efficient automotive solutions
Single and collaborative applications allowed
Part of the Contracts for Innovation – Resource Efficiency 2025 funding series

Eligibility

To be eligible, you must:

Be a UK-registered organisation (single applicant or consortium)
Propose a solution that meets a defined innovation need published by the competition partners
Have a validated prototype, demonstrator or TRL 5–7 technology
Intend to carry out the work in the UK and exploit results from the UK
Demonstrate your capability to deliver within the budget and timeframe

Universities and RTOs may join consortia but cannot lead.

Application Timeline

Opened: 14 July 2025
Closes: 27 August 2025 at 11:00 am UK time
Decisions announced: mid-September 2025
Projects begin: From 1 October 2025
Projects complete: By 30 April 2026

Partner & Funder Context

This competition is led by Innovate UK, with delivery supported by:

Zenzic – UK’s connected and automated mobility accelerator
Advanced Propulsion Centre (APC) – supporting low-emission transport innovation
KTN (Innovate UK Business Connect) – challenge owner engagement

The automotive strand complements UK industrial strategy priorities in mobility decarbonisation, battery supply chain resilience, and sustainable manufacturing.

Scope

This strand of the 2025 Contracts for Innovation competition focuses on resource-efficient solutions for the UK automotive industry, aligned with net-zero and circular economy objectives.

Projects must target:

Resource intensity reduction across automotive systems and materials
Decarbonisation of supply chains: batteries, metals, composites
Circularity, reuse, and recyclability of vehicle components and materials
Lightweighting and material substitution strategies
Innovations that improve life-cycle emissions, supply security, or cost-efficiency

Projects must demonstrate measurable impact and be capable of market deployment within 2–5 years.

Funding and Delivery

Up to £3 million including VAT is available under a pre-commercial procurement contract
This is not a traditional grant: funding is paid in exchange for R&D services
Projects must start no earlier than 1 October 2025 and end by 30 April 2026
A clear deliverables plan must be defined in your application
IP is retained by the applicant, but government retains rights to use outputs for public benefit

Benefits to Applicants

High-level funding for advanced demonstrators or late-stage automotive R&D
De-risks capital-intensive development of sustainability-focused technologies
Aligns your innovation with UK government and industry net-zero goals
Opportunity to gain future commercial contracts with stakeholders like Zenzic, APC, and OEMs
No equity dilution or royalty commitments – retain your IP

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Our Service Offering in Grants

Our services include:

Grant scouting and strategy: identifying the right UK and EU funding opportunities for your project pipeline
Bid writing: crafting compelling, compliant applications with strong technical and commercial narratives
Grant management: supporting delivery, reporting, and compliance throughout the project lifecycle
Innovation loans: helping secure and manage Innovate UK loans for late-stage development and market readiness
International support: leveraging our global network to access cross-border innovation funding opportunities

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