DRIVE35 Innovation Fund 2025

Programme:Department for Business & Trade and Innovate UK/Advanced Propulsion Centre (APC)

Awards:Up to £40m

Geographical Scope:national

Beneficiaries:private

Key Features:Access up to £40 million to commercialise UK-made zero-emission vehicle technologies through large-scale demonstration or collaborative R&D.

Key Features

Up to £40 million in grant funding is available across two strands — Collaborate and Demonstrate — to accelerate zero‑emission vehicle technologies and manufacturing processes.
The Collaborate strand supports late‑stage collaborative R&D projects aimed at designing, developing and enabling the manufacture of technologies with a clear pathway to commercialisation. Projects must request between £2.5 million and £25 million, last 18‑36 months and achieve TRL 7‑8 by completion.
The Demonstrate strand funds product or process demonstrators that increase commercial or deployment opportunities for zero‑emission vehicle innovations. Demonstration projects typically request £0.5‑1.5 million, last 9‑12 months and target TRL 7‑9.

Eligibility

The lead organisation must be a UK‑registered business of any size. Projects must be collaborative; academic institutions, public bodies, charities and research organisations can participate but cannot lead.
Your project must request grant funding between £2.5 million and £25 million, be at least 50% match‑funded and aim for TRL 7‑8 at completion. Projects must last 18‑36 months and start by 1 March 2026 and end by 28 February 2029.
Consortia must include a vehicle manufacturer or Tier 1 supplier and contain at least one UK‑registered micro, small or medium‑sized enterprise (SME) claiming grant funding.
All project work must be carried out in the UK and results exploited in or from the UK. Non‑UK partners can join as non‑funded collaborators; subcontractors may be UK or overseas but costs must be justified and procurement rules followed.
There is no limit to the number of applications an organisation can lead or be involved in, but each application must show clear rationale for collaboration and align with one or more DRIVE35 scope themes.

Application Timeline

Competition opens: 14 July 2025.
Application deadline: 1 October 2025 at 11:00 am UK time.
Assessment results notified: December 2025.
Project start date: from 1 January 2026.
Project end date: no later than 31 March 2028.

Partner & Funder Context

Funded by the Automotive Transformation Fund (ATF) and delivered via the Advanced Propulsion Centre (APC) with support from the Department for Business & Trade and Innovate UK.
Part of the UK’s Automotive Transformation Strategy to secure sovereign battery production and zero‑emission vehicle component manufacturing by 2035.
Aligned with the UK’s Zero Emission Vehicle (ZEV) mandate, Industrial Strategy, and the wider Drive35 programme of feasibility studies and scale‑up competitions.
Supports development of a resilient UK supply chain, job creation and economic growth in the clean mobility sector.

Scope

Projects must align with one or more DRIVE35 themes: zero‑emission vehicle technologies, manufacturing competitiveness,
Zero‑emission vehicle projects may cover powertrains, batteries and fuel cells, thermal management, lightweight materials and other technologies enabling fully zero‑emission vehicles.
Manufacturing competitiveness projects should use R&D to improve the efficiency, productivity and cost‑competitiveness of automotive manufacturing plants and supply chains and/or lower embedded carbon emissions.
SDV and E/E architecture projects should innovate in automotive software, electrical and electronic architectures, connectivity and vehicle cyber security to enhance vehicle functionality and reduce time‑to‑market.
All proposals must target the rapid commercialisation and on‑vehicle deployment of innovations that support the UK’s transition to a zero‑emission automotive sector.

Funding and Delivery

Up to £40 million in total funding is available across two strands – Demonstration and Collaborative R&D – delivered through the Automotive Transformation Fund via the Advanced Propulsion Centre (APC).
Projects may request between £2 million and £20 million per project; grant intensity ranges from 50% to 70% depending on organisation size and activity.
Demonstration projects aim to validate technologies in real-world conditions and can be single or collaborative; Collaborative R&D projects must include at least one SME and focus on industrial research or experimental development.
Eligible technologies include battery cells and packs, electric drive units, fuel cells and hydrogen systems, power electronics, thermal management, lightweight materials, recycling and circular manufacturing, digital/process automation and manufacturing scale-up for ZEV components.
Projects must start from 1 January 2026, finish by 31 March 2028 and deliver a working prototype or demonstrator with clear commercialisation pathways.
Applicants must comply with Innovate UK/ATF funding rules and ensure all work is carried out in the UK; collaborative consortia should demonstrate clear UK supply chain benefits and technology readiness progression.

Benefits to Applicants

Access substantial grant funding to scale and commercialise zero‑emission vehicle technologies.
Validate innovations in real‑world environments, de‑risking investment and attracting OEM or investor partnerships.
Support TRL progression from late‑stage R&D to commercial‑ready demonstration.
Position your organisation within the UK’s flagship zero‑emission vehicle supply chain and automotive transformation programmes.
Leverage FI Group’s expertise to optimise your application and maximise scoring.

Our Service Offering in Grants

At FI Group UK, we help businesses unlock funding for innovation through expert support in grant discovery, bid writing, management, and innovation loans. From early-stage project scoping to full application and delivery support, our team ensures your funding journey is efficient, strategic, and successful.

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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
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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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