DRIVE35 Scale-up: Feasibility Studies

Overview

DRIVE35 (Driving Research and Investment in Vehicle Electrification) is a Department for Business and Trade programme supporting the UK’s automotive industry. It funds R&D and commercial scale-up of innovative zero emission vehicle technologies, unlocking investment in vehicles, batteries and their supply chains.

Innovate UK, DBT and the Advanced Propulsion Centre UK (APC) will invest up to £5 million through the DRIVE35 Scale-Up: Feasibility Studies competition. The focus is on feasibility studies for UK-based manufacturing facilities for zero emission technologies, helping businesses become investment ready for production at scale.

Projects must apply to the correct competition, as applications cannot be transferred. Funding is competitive and limited, and not all high-scoring projects may be funded.

Scope

The competition funds feasibility studies into UK manufacturing facilities for:

• pilot scale manufacturing
• demonstration scale manufacturing
• industrial scale manufacturing

Projects should build a strong business case, improve the UK automotive supply chain, and support the transition to zero emission vehicles. Deliverables include detailed plans, financial models, and a business case review with the APC.

Projects can:

• Plan manufacturing facility builds or conversions
• Develop commercialisation plans
• Map out technical approaches and timelines
• Analyse costs, revenues and investment needs

Key themes and topics

Eligible technology areas:

• Electrical energy storage (batteries, supercapacitors, systems)
• Electric machines and driveline
• Power electronics (including Vehicle to Everything, V2X)
• ICE for off-road using non-fossil fuels
• Lightweighting materials and manufacturing
• Fuel cell systems and balance of plant
• Hydrogen storage and management
• Zero emission vehicle assembly

Projects may also involve:

• Upstream supply chain work
• Circular design and disassembly
• Digital transformation (AI, digital twins, IoT)
• Manufacturing decarbonisation
• Lean manufacturing techniques

Project duration

• Projects can last up to nine months
• Must start by 1 January 2026 and end by 31 August 2026
• Must start on the first of the month

Award value

Up to £5 million is available. Grant requests must be between £150,000 and £750,000.

Funding rates

For feasibility studies, which evaluate a project’s potential by uncovering key factors and informing confident, well-founded decisions about moving forward, you can get funding for your eligible project costs of:

• up to 70% if you are a micro or small organisation
• up to 60% if you are a medium sized organisation
• up to 50% if you are a large organisation

Research organisations may only participate as subcontractors, not as direct grant recipients. Subcontractor costs must be justified and proportionate to the total eligible project costs.

Eligibility criteria

Lead organisation

• Must be a UK-registered business of any size to apply alone.

Subcontractors

• Allowed, including overseas if justified.
• Overseas use must be explained and justified; lower costs alone aren’t enough.

Number of applications

• No limit on how many applications an organisation can lead.
• Must confirm capacity to manage multiple projects.

Sanctions

• Projects cannot involve parties under UK sanctions.

Use of animals

• Projects involving animals must comply with UKRI guidelines and supply extra details if funded.

Previous applications

• You can resubmit a previously assessed application once if unchanged.
• Funding may be withheld if you’ve failed to exploit previous projects or comply with grant conditions.

Subsidy control

• Funding follows the Research, Development and Innovation Streamlined Subsidy Scheme (SC10780).
• Innovate UK cannot fund organisations in financial difficulty.

For further legal advice, applicants should seek independent counsel regarding subsidy control or State aid rules.