DRIVE35 Scale Up Fund

Overview

The DRIVE35 Scale Up Fund is designed to accelerate the UK's transition to zero-emission vehicle manufacturing by supporting businesses developing pilot and demonstration-scale manufacturing facilities. Delivered by Innovate UK and the Advanced Propulsion Centre on behalf of the Department for Business and Trade, the competition will invest up to £150 million in projects that strengthen the UK's automotive supply chain, unlock significant private investment and help innovative technologies reach commercial production.

Projects must demonstrate how government funding will enable manufacturing scale-up while supporting long-term growth, competitiveness and resilience across the UK automotive sector.

Scope

Projects must:

• support growth, transition and resilience of the UK's automotive supply chain by increasing capability, productivity, efficiency and competitiveness
• contribute to the UK's strategic priorities, including the Industrial Strategy, Automotive Council Roadmaps and Strategic Technology Areas for eligible zero-emission vehicle technologies
• undertake a scale-up project to engineer, create (or convert) and validate manufacturing capability and process development at pilot or demonstration scale

The competition supports projects that develop manufacturing readiness for zero-emission vehicle technologies through activities such as:

• manufacturing facility planning and engineering
• fabrication and construction
• equipment procurement, installation and commissioning
• manufacturing process development
• quality assurance and Advanced Product Quality Planning (APQP)
• implementation of production technologies
• workforce training
• design for manufacture activities (up to 50% of eligible project costs)
• UK supply chain development
• testing, validation and verification
• market engagement and dissemination
• limited commercial activity where permitted under the competition rules

Projects may include the design, construction (or conversion) and commissioning of pilot or demonstration-scale manufacturing facilities.

Key themes and topics

Projects can focus on one or more of the following strategic technology areas:

• electrical energy storage including batteries, supercapacitors and battery management systems
• electric machines and associated driveline technologies
• power electronics including Vehicle-to-Everything (V2X)
• internal combustion engine technologies for off-road applications supporting the transition to zero emissions using non-fossil fuels
• lightweight materials and manufacturing processes
• fuel cell systems and associated balance of plant
• hydrogen storage and management systems
• zero-emission vehicle assembly

Projects can also include:

• upstream supply chain development including raw materials, component manufacture and sub-assemblies
• circular economy and design for disassembly
• digital transformation including AI, digital twins and Internet of Things technologies
• manufacturing process decarbonisation
• lean manufacturing and advanced automation

The competition will not support projects that:

• focus primarily on product development rather than manufacturing scale-up
• are too technologically immature for manufacturing scale-up
• focus on fossil fuelled automotive technologies
• develop hydrogen production
• develop off-vehicle charging infrastructure
• develop fuel retail or wholesale supply
• develop energy retail or wholesale supply
• focus primarily on digital or data technologies without manufacturing scale-up
• support speculative site-enabling projects
• support e-scooters, e-bikes or other low-powered personal mobility devices

Project duration

12 months minimum

Must start on 1 March 2027

End by 31 March 2030

Award value

Grant funding request between £2.5 million and £20 million

Projects must have total eligible costs of at least £5 million.

Funding rates

Businesses can receive grant funding towards eligible project costs of:

• up to 50% for micro, small and medium-sized businesses
• up to 30% for large businesses

Research organisations undertaking non-economic activity can claim up to 100% of eligible costs (or 80% FEC where applicable) and may account for up to 10% of the total eligible project costs.

Applicants must also demonstrate that the grant will unlock private co-investment worth at least twice the value of the grant request. You will have a period of up to 9 months to raise required co-investment.

APC contribution - grant funded participants will be required to pay 3.5% on grant payments towards APC operating budget

Eligibility criteria

• Projects may be led by a single UK registered business or delivered collaboratively
• The lead organisation must be a UK registered business of any size
• Collaborators may include UK registered businesses, academic institutions, charities, not-for-profit organisations, public sector organisations and research and technology organisations (RTOs)
• Subcontractors should preferably be UK based with fully justified and appropriate costs. Overseas subcontractors are permitted where applicants can clearly justify why suitable UK suppliers are unavailable
• All funded project work must be carried out within the UK
• Applicants must intend to exploit the project results from or within the UK
• Subsidy Control Act 2022 and, where applicable, State Aid rules apply