New calls offer funding to automotive companies, with grants available for a wide range of projects.
If you are working on a cutting-edge technology connected to zero-emission transportation, you could secure funding from two innovation grant competitions opened under the Driving Research & Investment in Vehicle Electrification (DRIVE35) programme.
Delivered by Innovate UK, the Department for Business and Trade, and the Advanced Propulsion Centre UK (APC), the competitions are:
- Innovation Fund: Collaborate 2 – Supports collaborative projects to prepare late-stage technologies for commercialisation.
- Innovation Fund: Demonstrate 2 – Funds the development of products or process ‘demonstrators’, which showcase the benefits of your project work.
- Promote Zero Emission Vehicle Technologies
- Enhance Manufacturing Competitiveness
- Future Vehicle Innovation – Software Defined Vehicles (SDV) and Electrical/Electronic (E/E) Architectures
Below, I’ve explained each of these competitions in more detail, including who’s eligible, what kind of projects they support, and how much funding they offer.
If you want to know whether you’re eligible and have a good chance of winning funding, GrantTree can help.
Simply request a free Eligibility and Competitiveness Assessment and in just 30 minutes, our grants experts will tell you:
- Whether you’re eligible (and if not, why not)
- What we judge to be your chances of success
- What other grants and funding you’re eligible for
Innovation Fund: Collaborate 2
What’s it for?
Collaborative* research and development projects that design, develop and enable manufacture of technologies targeting commercialisation.
*Collaborative means involving two more partners. For this competition, the funding bodies suggest no more than six organisations work on a project.
Am I eligible?
- Be working on late-stage R&D and targeting commercialisation at the end of your project
- Be a business of any size (to lead an application)
- Be developing a technology that supports the transition to zero-emission vehicles
- Be looking to achieve Technology Readiness Level (TRL) 7-8 or Manufacturing Readiness Level (MRL) 5-6 by the end of your project
- Be able to start your project by 1 October 2026
- At least one SME
- At least one vehicle manufacturer or Tier 1 supplier that supplies parts directly to an OEM
How much funding’s available?
Grants of £2.5 million to £25 million. At least 50% of your project costs must be match-funded.
When’s the deadline?
18 March 2026 at 11 am.
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Innovation Fund: Demonstrate 2
What’s it for?
This strand will provide funding for organisations to develop a ‘demonstrator’, meaning a product or process showcasing the benefits and commercial opportunity of your technology.
Am I eligible?
To qualify for this competition, you must:
- Be a business of any size (to lead an application)
- Be developing a technology that supports the transition to zero-emission vehicles
- Be looking to complete a project that takes your technology to TRL 5 or 6 or MRL 4-5
- Be able to start your project by 1 September 2026
How much funding’s available?
Between £500,000 and £1.5 million. Your project must be at least 50% match funded.
When’s the deadline?
11 March 2026 at 11 am.
Funding amounts for this competition
Exactly how much funding you can apply for depends on whether you are a commercial entity (a business) or a non-commercial entity (e.g. a university).
Funding for businesses
As an individual business, the amount of funding you can get depends on your size and what kind of project you’re looking to undertake. More on the official definition of micro, small, medium, and large companies.
| Project Type | Micro and Small | Medium | Large |
|---|---|---|---|
| Industrial research projects | 70% | 60% | 50% |
| Experimental development projects | 45% | 35% | 25% |
What the different project types mean
- Industrial research: Testing how a product, system or component operates in the laboratory or a simulated environment.
- Experimental development: Helping organisations make further technical improvements to advanced products, processes or services by testing them in environments that represent real-world conditions. Experimental development projects can include prototyping, demonstrating and piloting.
Funding for non-economic organisations
- 100% of your costs as an RTO, charity, not-for-profit, or public sector organisation
- 80% of your full economic costs if you are Je-S registered (e.g. a university)
How GrantTree can help
Drive35 is a rare opportunity to secure a large grant to fund R&D connected to zero-emissions vehicles. As such, it’s likely to be highly competitive, with only a small number of applicants receiving funding.
Calling on their unmatched experience securing funding from Innovate UK and support from our network of active Innovate UK assessors, GrantTree’s grant funding experts can make sure you put forward the strongest possible application, dramatically increasing your chance of success.
To get help with your DRIVE35 application, or to find out more about how we can help you win grant funding, just get in touch.
