Submissions open for DRIVE35 Innovation Fund: Demonstrate (UK)

DRIVE35 (Driving Research and Investment in Vehicle Electrification) is a Department for Business and Trade led programme aimed at transforming the UK’s automotive industry. This is achieved by supporting R&D and the commercial scale up of innovative zero emission vehicle technologies, and unlocking capital investment in zero emission vehicles, batteries and their wider supply chain.

Aims

• The aim of DRIVE35 Innovation Fund is to support R&D projects that design, develop and manufacture technologies in the automotive sector. Your project will support the UK’s transition to zero emission vehicles and a pathway to a net zero automotive industry.
• The aim of strand 2 (this strand) is to develop a product or process demonstrator, to show increased capability and commercial exploitation opportunity as a result of the project.

Themes

• Theme 1:
  • Promote zero emission vehicle technologies:
    • Focus on product and process innovations that contribute to achieving zero emissions for on board vehicle applications in one or more of the following areas:
      • electrical energy storage: development of batteries, supercapacitors, their components, management, and integration systems
      • electric machines and associated driveline
      • power electronics including Vehicle-to-Everything (V2X)
      • Internal Combustion Engines (ICE) for on-road applications, they will only fund project proposals which aim to achieve zero harmful tailpipe emissions utilising non-fossil fuels
      • Internal Combustion Engines (ICE) for off-road applications, they will fund project proposals that support a transition to zero emissions, utilising non-fossil fuels
      • lightweight materials and manufacturing processes
      • fuel-cell systems and associated balance of plant
      • hydrogen storage and management systems
• Theme 2:
  • Enhance Manufacturing Competitiveness:
    • R&D projects which use innovations to enable productivity and cost competitiveness and reduce embedded carbon. These will be across all aspects of zero emission vehicle and technology manufacturing and their associated supply chain in one or more of the following areas:
      • Digital Transformation: integration of digital tools within the manufacturing process. Such as the use of AI, digital twins, vision systems and Internet of Things (IoT)
      • manufacturing process decarbonisation: switching processes to use non-fossil energy sources or innovations enabling reduced energy consumption within manufacturing processes including capture and reuse
      • Lean Manufacturing: implementation of innovative lean principles to improve circularity of materials used in processes, reduce their environmental impact and improve efficiency including the use of advanced automation techniques
      • Supply Chain Development: initiatives for suppliers to improve their processes, capability and capacity for R&D and subsequent industrialisation for example, flexible production lines to service multiple customers to lower capital investment. UK capability building to enable market access, and sustainability
• Theme 3:
  • Future Vehicle Innovation – Software Defined Vehicles (SDV) and Electrical/Electronic (E/E) Architectures:
    • Focus on innovations in software and E/E architecture to enhance zero emission vehicle functionality and reduce time to market. These projects will leverage the UK’s unique innovation skills for global product competitiveness, in one of more of the following areas:
      • Integrated E/E systems: development of scalable and flexible E/E architectures, including software platforms and hardware design that support advanced vehicle functionalities and future technologies
      • validation and verification technology: use of digital twins and in the loop (xIL) innovations to create comprehensive models of E/E systems, enabling rapid simulation, optimisation, and validation of interconnected systems
      • embedded Software Development: innovations, including in the creation of, embedded software that decrease time to market, enhance vehicle performance, safety, security and connectivity
      • network communications: development of robust network communication systems to support the integration of various electronic components and systems within the vehicle
      • Control Systems: advanced control systems that improve vehicle functionality and performance

Funding Information

• Up to £40 million UK Government grant funding has been allocated to fund innovation projects in this competition. Funding will be in the form of a grant.
• Your total grant funding request must be no more than £1.5 million and no more than 50% of your total eligible project costs. This is regardless of your individual partners’ grant claims.

Ineligible Projects

• They are not funding projects that:
  • focus on business processes not directly involved in the design, test, validation, recycle or reuse or manufacture of vehicles for example, company back office systems and infrastructure
  • relate to the design, development, integration, use, test or direct manufacturing of automated driving systems (ADS)
  • only focussed on the development of clean fuels
  • not aligned with the UK net zero research innovations framework
  • requesting more than 50% grant for total project costs
  • are developing solutions such as e-Scooters or e-Bikes
• They cannot fund projects that are:
  • dependent on export performance, for example, giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country
  • dependent on domestic inputs usage, for example, giving a subsidy to a baker on the condition that it uses 50% UK flour in their product

Eligibility Criteria

• Your project:
  • Your project must:
    • lead to a demonstrator product or process to enable new commercial opportunities or secure follow on investment
    • have total eligible grant funding request of between £500,000 and £1.5 million
    • be a minimum of 50% match funding, for example, if you are asking for £500,000 in grant your total eligible project costs need to be a minimum of £1 million
    • align to at least one of the three scope themes
    • be achieving TRL 5-6 or MRL 4-5 by completion, based on published Automotive Technology and Manufacturing Readiness Levels
    • last between 9 and 12 months
    • carry out all of its project work in the UK
    • intend to exploit the results from or in the UK
    • start by 1 February 2026
    • end by 31 January 2027
• Lead organisation:
  • To lead a collaborative project or work alone your organisation must be a UK registered business of any size.

For more information, visit GOV.UK.