DRIVE35 Innovation Fund Demonst

Application Platform: Innovation Funding Service (IFS).

Application Sections: Project details, application questions and financial information.

Assessment Process: Applications are reviewed by independent assessors followed by an economic value-for-money assessment.

Co-Funders: Department for Business and Trade (DBT); Advanced Propulsion Centre UK (APC)

Collaboration Rules: Projects can be single-applicant or collaborative. Academic institutions cannot lead or apply alone.

Competitiveness: Approximately 30% chance of success based on similar competitions.

Decision Risks: Applications may be rejected if they fall outside scope, fail eligibility requirements, do not pass economic value-for-money assessment, or do not comply with funding rules.

Decision Timeline: Applicants notified on 22 June 2026.

Eligible Expenses: Eligible project costs related to R&D, technology development, testing, validation and demonstrator development activities.

Eligible Organisations: Businesses of any size, academic institutions, charities, not-for-profit organisations, public sector organisations, and research and technology organisations.

Eligible Scope: Projects must develop a demonstrator product or process showing increased capability and commercial exploitation potential related to zero emission vehicle technologies or manufacturing.

Funding Intensity: Industrial research: up to 70% for micro or small organisations, 60% for medium organisations, 50% for large organisations. Experimental development: up to 45% for micro or small organisations, 35% for medium organisations, 25% for large organisations.

Grant Amount: £500,000 to £1,500,000 grant funding request

Important Notes: A 3.5% industrial contribution on grant funding is payable to the Advanced Propulsion Centre by all partners receiving grant funding. Demonstrator outputs may be showcased at the 2027 CENEX Expo.

Ineligible Projects: Projects requesting more than 50% grant funding, projects focused on business processes unrelated to vehicle design or manufacturing, automated driving systems, projects focused only on clean fuels, projects outside the UK net zero innovation framework, and solutions such as e-scooters or e-bikes.

Interview Stage: Yes. Applicants may be invited to interviews between 5 May 2026 and 15 May 2026.

Key Requirements: Projects must demonstrate innovation in zero emission vehicle technologies or manufacturing, support the UK automotive supply chain, and target post-project commercialisation.

Lead Organisation Requirement: The lead organisation must be a UK registered business of any size.

Match Funding Requirement: Projects must be at least 50% match funded.

Project Duration: 9 to 12 months

Project End Date: By 31 August 2027

Project Start Date: From 1 September 2026

Publication Date: 2026-01-08 00:00:00

Renewal Rules: Organisations may be involved in multiple applications.

Research Category: Industrial research and experimental development projects.

Research Organisation Funding: Research organisations undertaking non-economic activity may share up to 30% of total eligible project costs.

Subcontractors: Subcontractors are allowed and must normally be UK based unless justification is provided for overseas subcontractors.

Technology Themes: Promote Zero Emission Vehicle Technologies; Enhance Manufacturing Competitiveness; Future Vehicle Innovation including Software Defined Vehicles and Electrical/Electronic architectures.

Total Fund Available: Up to £33,000,000