DRIVE35 Innovation Fund: Collaborate 2

Overview

This is for consortia that are close enough to market that the next step is industrial adoption: think manufacturing readiness, supply chain fit, and commercial traction. Your project should finish at TRL 7–8 or MRL 6–7, with direct commercialisation at the end of the project (not “commercialisation in three years, honest”).  

Scope

Your project must support the UK’s transition to zero emission vehicles and a pathway to a net zero automotive industry, with outcomes that strengthen capability, productivity and competitiveness across the UK automotive supply chain. Strand 1 specifically supports collaborative R&D that designs, develops and enables manufacture of technologies targeting post-project commercialisation.  

Key themes and topics

Your proposal must fit one or more of the following themes:  

Theme 1: Promote zero emission vehicle technologies

• Batteries/supercapacitors, components, management and integration systems
• Electric machines, driveline and power electronics (including V2X)
• ICE (on-road: only if aiming for zero harmful tailpipe emissions using non-fossil fuels)
• ICE (off-road: transition to zero emissions using non-fossil fuels)
• Lightweight structures, fuel cells, hydrogen storage and management
• Supply chain (raw materials to subassemblies), circularity/design for disassembly, and digital validation/verification/design

Theme 2: Enhance manufacturing competitiveness

• Digital transformation (AI, digital twins, vision systems, IoT)
• Manufacturing process decarbonisation (non-fossil energy, reduced energy consumption, capture and reuse)
• Lean manufacturing and advanced automation
• Supply chain development (capability, capacity, flexible lines, UK capability building and sustainability)

Theme 3: Future vehicle innovation – SDV and E/E architectures

• Software factory approaches, embedded software and connectivity
• Control systems platforms and integration
• Scalable E/E architectures, comms, high-performance compute, sensors/actuators
• Simulation (digital twins, xIL), safe and secure AI for functional software, AI-driven development/validation tools

What they will not fund (examples)

• Projects requesting more than 50% grant of total project costs
• Back-office/business systems not directly tied to vehicle design/test/validation/recycle/reuse/manufacture
• Automated driving systems (ADS) design/development/integration/testing/manufacture
• Projects only focused on clean fuels; e-scooters/e-bikes  

Project duration

• 18 to 36 months  
• Project must start by 1 October 2026 (projects start on the first of the month)  

Award value

• Grant request must be £2.5 million to £25 million  
• Grant is limited to a maximum of 50% of total eligible project costs (so minimum 50% match funding)  
• At least 70% of project costs must be incurred by commercial organisations  
• A maximum of six partners is recommended  

Funding rates

Industrial research (by organisation size):

• Up to 70% (micro/small), 60% (medium), 50% (large)  

Experimental development (nearer to market):

• Up to 45% (micro/small), 35% (medium), 25% (large)  

Research participation (non-economic activity):

• Research organisations can share up to 30% of total eligible project costs (split if multiple research orgs)  
• Of that 30%: up to 100% for eligible org types, or 80% FEC for Je-S registered institutions  

Other important cost note:

• A 3.5% industrial contribution is payable to APC by all partners on grant received  

Eligibility criteria

• Lead must be a UK registered business of any size, applying as a collaborative project, and claiming grant  
• Consortium must include a vehicle manufacturer or Tier 1 supplier supplying parts directly to an OEM  
• Consortium must include at least one UK registered SME claiming grant funding  
• All project work must be carried out in the UK and results exploited from or in the UK
• Partners can include UK registered businesses, academic institutions, charities, not-for-profits, public sector organisations, and RTOs (academics cannot lead)  
• Subcontracting is allowed; overseas subcontractors need a strong justification (not just cheaper)  
• Subsidy Control Act 2022 applies; financial viability checks apply