DRIVE35 Scale-up Fund

Overview

DRIVE35 Scale Up Fund is a DBT-backed programme delivered by Innovate UK and the Advanced Propulsion Centre (APC) to accelerate UK manufacturing scale-up for zero-emission vehicle (ZEV) technologies. Up to £150m in grants will co-fund pilot or demonstration-scale facilities and processes, unlocking substantial private investment and enabling market entry for UK supply-chain businesses.

Scope

Supports manufacturing facility and process development at pilot or demonstration scale to validate capability, productivity and commercial viability. Projects must strengthen the UK automotive supply chain and align with national priorities (e.g. Automotive Council roadmaps, Industrial Strategy). Activities can include facility engineering, equipment procurement/commissioning, process and quality development (e.g. APQP), design-for-manufacture, workforce training, and supply-chain development. Circularity, digital transformation, decarbonised manufacturing and lean practices are in scope.

Key themes and topics

• Battery & storage: cells, packs, supercapacitors, components, management and integrated systems
• E-machines & driveline power electronics (incl. V2X)
• Fuel cells & hydrogen: stacks, balance-of-plant, hydrogen storage/management
• Light-weighting: advanced materials and manufacturing processes
• ZEV assembly and associated supply chain
• Upstream supply chain (raw materials, components, sub-assemblies)
• Circularity & design for disassembly
• Manufacturing productivity enablers: digital twins, IoT/AI, process decarbonisation, advanced automation, lean

Target markets include on-highway (L-category to HGV) and off-highway/NRMM (construction, agriculture, mining). Applicants must show customer engagement and route to adoption. (ICE for off-road is in scope only where it supports transition to zero emissions via non-fossil fuels.)

Project duration

• 12 to 46 months (includes initial period to raise match funding)
• Must start from 1 June 2026 and end by 31 March 2030
• Work must be carried out in the UK (minor justified overseas activity allowed)

Award value

• Grant request: £2.5m to £20m
• Total eligible project costs: > £5m

Funding rates

• Businesses: up to 50% of eligible costs (SMEs); up to 30% (large)
• Research participation (non-economic): up to 10% of total eligible project costs shared across research partners
  
  • RTOs/charities/not-for-profits/public sector/research organisations: up to 100% of eligible costs
  • Je-S–registered academics: 80% FEC (enter 80% FEC at 100% funding in IFS)
• APC industrial contribution: 3.5% payable on each grant payment received
• Substantial private co-investment required: at least 2× the grant requested (e.g. £5m grant should unlock ≥£10m private investment)

Eligibility criteria

• Lead: UK-registered business (any size); single applicant or consortium
• Partners (UK-registered): businesses, academic institutions, charities, not-for-profits, public sector orgs, RTOs
• Non-UK partners: allowed with their own funding (costs count toward total eligible costs); subcontractors may be UK or justified overseas
• Must exploit results in/from the UK, comply with Subsidy Control, sanctions, and animal welfare guidance
• Projects must meet the grant size/cost/duration thresholds above and include a clear case for government intervention and market entry plan
• Match-funding window: up to 9 months post-award (extendable by up to 3–4 months with evidence) to raise required co-investment

Note: Limited commercial activity is permitted only to support R&D, validation and verification prior to full production; working capital for commercial production and land purchase are not eligible costs.