DRIVE35 Innovation Fund: Collaborate

Who can apply

Your project

Your project must:

• have a total grant funding request of between £2.5 million and £25 million

• be late stage R&D targeting direct commercialisation at the end of the project

• be collaborative

• be a minimum of 50% match funded, for example, if you are asking for £2.5 million in grant your total eligible project costs must be a minimum of £5 million

• align to at least 1 of the 3 scope themes

• be achieving TRL 7-8 or MRL 6-7 by completion, based on published Automotive Technology and Manufacturing Readiness Levels

• last between 18 and 36 months

• carry out all of its project work in the UK

• intend to exploit the results from or in the UK

• start by 1 March 2026

• end by 28 February 2029

Projects must always start on the first of the month, even if this is a non-working day. You must not start your project until your Grant Offer Letter has been approved by Innovate UK. Any delays within Project Setup may mean we need to delay your project start date.

You must only include eligible project costs in your application. See our overview of eligible project costs. For specific guidance, see the eligibility section in this competition.

If your project’s total grant funding request or duration falls outside of our eligibility criteria, you must provide justification by email to support@iuk.ukri.org at least 10 working days before the competition closes. We will decide whether to approve your request.

If you have not requested approval or your application has not been approved by us, you will be made ineligible. Your application will then not be sent for assessment.

Lead organisation

To lead a collaborative project your organisation must:

• be a UK registered business of any size

• collaborate with other UK registered organisations

• be a grant claiming recipient

• include in your consortium a vehicle manufacturer or Tier 1 supplier who supplies parts directly to an original equipment manufacturer (OEM)

The consortium must contain at least one UK registered micro, small or medium sized enterprise (SME) claiming grant funding on this application.

More information on the different types of organisation can be found in our Funding rules.

Academic institutions cannot lead or work alone.

Project team

To collaborate with the lead, your organisation must be one of the following UK registered:

• business of any size

• academic institution

• charity

• not for profit

• public sector organisation

• research and technology organisation (RTO)

Each partner organisation must be invited into the Innovation Funding Service (IFS) by the lead to collaborate on a project. Once partners have accepted the invitation, they will be asked to login or to create an account in IFS. They are responsible for entering their own project costs in the application.

To be an eligible collaboration, the lead and at least one other organisation must:

• apply for funding when entering their costs into the application.

• include rationale for the collaboration and describe the structure in your application

• ensure any one partner does not account for more than 70% of the total eligible costs

Non-funded partners

Your project can include non-UK partners, including partners based in the EU, who bring their own funding. Non-UK partners are permitted to carry out project work from within their home countries and exploit results overseas. Their costs will count towards the total eligible project costs.

Subcontractors

Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you cannot use subcontractors from the UK.

You must provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

All subcontractor costs must be justified and appropriate to the total project costs.

Number of applications

There is no limit on the number of applications an organisation can be involved in.

Sanctions

This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.

Use of animals in research and innovation

Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Applicants must ensure that all of the proposed work within projects, both that in the UK and internationally, will comply with the UKRI guidance on the use of animals in research and innovation.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

Previous applications

You can use a previously submitted application to apply for this competition.

If you have previously submitted an application that reached our assessment stage, you can re-apply once more with the same proposal.

If there are minor differences to the proposal, but it is judged by us to be ‘not materially different’, the same rule applies.

We will not award you funding if you have:

• failed to exploit a previously funded project

• an overdue independent accountant’s report

• failed to comply with grant terms and conditions

• overdue industrial contribution payments to the APC

Innovate UK may withhold a grant payment at any time if you have any outstanding sums due to us in relation to other projects.

Subsidy control (and State aid where applicable)

This competition provides funding in line with the Subsidy Control Act 2022. Further information about the Subsidy requirements can be found within the Subsidy Control Act 2022 (legislation.gov.uk).

Innovate UK is unable to award organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.

EU State aid rules now only apply in limited circumstances. Please see the Windsor Framework to check if these rules apply to your organisation.

In the ‘Project details’ section of your application you will be asked questions to indicate if State Aid or Subsidy applies to your organisation.

Further Information

If you are unsure about your obligations under the Subsidy Control Act 2022 or the State aid rules, you should take independent legal advice. We are unable to advise on individual eligibility or legal obligations.

You must always make sure that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.

This aims to regulate any advantage granted by a public sector body which threatens to, or distorts competition in the United Kingdom or any other country or countries.

This award is classified as a Subsidy which does not form part of your Minimal Financial Assistance or De Minimis allowance.

Funding

Up to £40 million has been allocated to fund late stage R&D projects in this competition. Funding will be in the form of a grant.

Your project must be a pre-production project and you must apply for the minimum amount of grant funding required to make your project viable.

Your total grant funding request must be no more than £25 million and no more than 50% of your total eligible project costs. This is regardless of your individual partners’ grant claims.

A minimum of 70% of your project’s total project costs must be incurred by commercial organisations.

If your organisation’s work on the project is commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically but for the purpose of this project will be undertaking commercial or economic activity.

The balance between your total eligible project costs and the amount of grant awarded must be funded by the organisation receiving the grant.

For industrial research projects, 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

For experimental development projects which are nearer to market, you can get funding for your eligible project costs of:

• up to 45% if you are a micro or small organisation

• up to 35% if you are a medium sized organisation

• up to 25% if you are a large organisation

For more information on company sizes, please refer to the company accounts guidance.

If you are applying for an award funded under State aid Regulations, the definitions are set out in the European Commission Recommendation of 6 May 2003.

Innovate UK may revoke our decision to provide funding without notice if government commitment for this initiative is withdrawn.

We reserve the right to adjust funding allocations for any of our competitions under exceptional circumstances, for example, in response to changes in policy, portfolio funding considerations, or broader government funding decisions.

Research participation

The research organisations undertaking non-economic activity as part of the project can share up to 30% of the total eligible project costs. If your consortium contains more than one research organisation undertaking non-economic activity, this maximum is shared between them. Of that 30% you can get funding for your eligible project costs of up to:

• 100% of your eligible project costs if you are an RTO, charity, not for profit organisation, public sector organisation or research organisation

• 80% of full economic costs (FEC) if you are a Je-S registered institution such as an academic

Eligibility criteria for claiming 80% of FEC funding

1. Research organisations using the Je-S system must submit their costs through the Je-S system which calculates the 80% FEC figure.

2. On IFS, only the 80% FEC output should be entered at 100% funding.

3. Applicants do not need to show the remaining 20% on the finance table.

To find out more see our: Cost Guidance for Academics.

The Advanced Propulsion Centre UK (APC)

A 3.5% industrial contribution is payable to the APC by all partners on grant received.

Your proposal

The aim of DRIVE35 Innovation Fund is to support R&D projects that design, develop and manufacture strategically important 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 1 (this strand) is to support collaborative R&D projects that design, develop and enable manufacture of technologies which target post project commercialisation.

Your proposal must fall within one or more of the following:

Theme 1: Promote Zero Emission Vehicle Technologies:

You must 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, we 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, we 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

Within the technology scope outlined above;

Your project can include:

• upstream supply chain for the above technologies including raw materials, component manufacturing, subassembly manufacturing

• circularity and Design for Disassembly: projects focused on the disassembly, remanufacturing, recovery, and reuse of materials

• digitalisation of validation, verification, and design: use of digital tools to enhance the design, validation, and verification processes for the listed technologies

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, for example, 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 as well as UK capability building to enable market access, and sustainability

The technologies in scope within this theme apply to any component, sub assembly or system involved in the manufacture of zero emission vehicles. Your proposal must have an outcome which increases the likelihood and competitiveness of manufacturing zero emission vehicles and their supply chain in the UK.

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

Portfolio approach

We want to fund a variety of projects across different strands, themes, technologies, markets, technological or manufacturing level maturities or focus, and research categories. We call this a portfolio approach.

Research categories

We will fund industrial research projects and experimental development projects, as defined in the guidance on categories of research.

Projects we will not fund

We are not funding projects that are:

• focused 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

• including the design, development, integration, use, test or direct manufacturing of automated driving systems (ADS)

• are 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

• developing solutions such as e-Scooters or e-Bikes

We 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

14 July 2025

Pre-recorded briefing event: watch the recording

Briefing slides are available to download from Supporting Information.

31 October 2025

Invite to interview and Economic feedback issued

5 November 2025

Technical Feedback issued

7 November 2025

Response to Economic Feedback at 11am

13 November 2025

DBT VfM discussion

14 November 2025

Response to Technical Feedback at 11am

18 November 2025

Vfm changes to be returned

24 November 2025

Interviews start

28 November 2025

Interviews end

17 December 2025

Applicants notified

1 March 2026

Project start from

Before you start

You must read the guidance on applying for a competition on the Innovation Funding Service before you start.

Before submitting, it is the lead applicant’s responsibility to make sure:

• that all the information provided in the application is correct

• your proposal meets the eligibility and scope criteria

• all sections of the application are marked as complete

• that all partners have completed all assigned sections and accepted the terms and conditions (T&Cs)

You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.

What we ask you

The application is split into three sections:

1. Project details.

2. Application questions.

3. Finances.

Accessibility and Inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us.

You can contact us at any time to ask for guidance.

We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.

You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

1. Project details

This section provides background for your application and is not scored.

Application team

Decide which organisations will work with you on your project and invite people from those organisations to help complete the application.

Application details

Give your project’s title, start date and duration.

Research category

Select the type of research you will undertake.

Project summary

Describe your project briefly and be clear about what makes it innovative. We use this section to assign the right experts to assess your application.

Your answer can be up to 400 words long.

Public description

Describe your project in detail and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This can happen before you start your project.

Your answer can be up to 400 words long.

Scope

Describe how your project fits the scope of the competition. If your project is not in scope, it will not be eligible for funding.

Your answer can be up to 400 words long.

2. Application questions

The assessors will score all your answers apart from questions 1 to 7. The technical assessors will score all your answers for questions 8 to 14. Questions 15 to 20 are appraised as part of the DBT economic assessment.

You will receive feedback for each scored question 8 to 14. Find out more about how our assessors assess and how we select applications for funding.

You must answer all questions. Your answer to each question can be up to 400 words long.

You must not include any website addresses or links (URLs) in your answers. If you do, your application will be made ineligible.

Question 1. Applicant location (not scored)

You must state the name and full registered address of your organisation and any partners or subcontractors working on your project.

We are collecting this information to understand more about the geographical location of all applicants.

Your answer can be up to 100 words long.

Question 2. Animal testing (not scored)

Will your project involve any trials with animals or animal testing?

You must select one option:

• Yes

• No

We will only support innovation projects conducted to the highest standards of animal welfare.

Further information for proposals involving animal testing is available at the UKRI Good Research Hub and NC3R’s animal welfare guidance.

Question 3. Permits and licences (not scored)

Will you have the correct permits and licences in place to carry out your project?

We are unable to fund projects which do not have the correct permits or licences in place by your project start date.

You must select one option:

• Yes

• No

• In the process of being applied for

• Not applicable

Question 4. International collaboration (not scored)

Does your proposed work involve any international collaboration or engagement?

You must provide details of any expected international collaboration or engagement.

You must include a list of the names and the countries, any international project co-leads, project partners, visiting researchers, or other collaborators are based in.

You must also include details of any subcontractors or service providers.

If your proposed work does not involve international collaboration or engagement, your answer must confirm this.

Your answer can be up to 100 words long

Question 5. Trusted Research and Innovation (not scored)

You must explain if your proposed project work relates to UKRI’s Trusted Research and Innovation (TR&I) Principles, including:

• a list of any dual-use (both military and non-military) applications to your research

• a list of the areas where your project is relevant to one or more of the 17 areas of the UK National Security and Investment (NSI) Act

• whether an export control license is required for this project under the academic export control guidance and the status of any applications

• a list of any items or substances on the UK Strategic Export Control List

If your proposed work does not relate to UKRI’s TR&I Principles, your answer must confirm this.

We may ask you to provide additional TR&I information at a later date, in line with UKRI TR&I Principles and funding terms and conditions.

Your answer can be up to 400 words long

Question 6. Marketing and communications project lead (not scored)

You must provide the full name and email address of a marketing and communications contact for the lead partner in your project.

Your answer can be up to 100 words long.

Question 7. Which theme is applicable to your application (not scored)

You must consider which of the three themes listed below best represents your project and provide a percentage against each. The total percentage given must add up to 100%.

• Theme 1: Promote Zero Emission Vehicle Technologies

• Theme 2: Enhance Manufacturing Competitiveness

• Theme 3: Future Vehicle Innovation - Software Defined Vehicles (SDV) and Electrical/Electronic (E/E) architectures

Your answer can be up to 400 words long.

Question 8. Why this project

Why this project? Summarise the strategic rationale for this project.

Describe:

• how this project supports realisation of each consortium members corporate strategy

• your organisation’s internal justification for undertaking the project

• the problem; the customer problem that the outcomes of this project will solve, be specific about the needs of your target customers

• if your customer is internal to your organisation, you can also describe internal challenges or problems that this project is looking to address

• the solution; how this project will provide a viable solution to these problems

• the business opportunities for the organisations undertaking this project

• how the use of digital solutions will add value to this project, the resultant outcomes, and your organisation’s wider digital strategy, if appropriate

Your answer can be up to 400 words long.

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 9. Identify the market and your plan to address it

What is the target market for the outcomes of this project? How will you bring the product or process to market and exploit its commercial potential?

Explain:

• the size of the markets you are targeting with the outputs and ensure you cover the primary markets for the main project outcomes, including important additional markets targeted by consortia members, it may include secondary markets outside of the automotive market

• the scale and geographical distribution of the overall market, include the segments you plan to address and provide evidence of your working and calculations clearly addressing any split in volumes between Zero Emission Vehicles and other sectors or industries

• your market exploitation strategy, including customer segmentation, your plan to make sales to your initial market, your growth plans and any barriers to entry and how you will overcome them

• who the competitors are, how you will manage this challenge and make it clear why the outputs of this project put your consortia partners in a strong position to win in your target market segments

• the target cost requirements that you need to hit to be successful in the market

Your answer can be up to 400 words long.

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

You can also submit letters of intent from potential suppliers or customers as an appendix to support your answer. These must be PDFs no larger than 10MB. They can be up to two A4 pages and must be legible at 100% zoom.

Question 10. Benefits of this collaboration

What are the benefits of this collaborative project to the consortium members?

Explain:

• the benefits of the collaborative project to each of the partners, in detail

• the financial returns for each consortium member that might be delivered as a result of this project

• how this project will lead to jobs created or safeguarded within each consortium member

• how the project will lead to development of long lasting new skills and capabilities within the consortium members

• why the consortium is essential to deliver the project, and how the formation of this consortium is an opportunity for all involved

• how knowledge will be shared between partners

• how this project will leverage the consortium to deliver capability improvement across the companies engaged

• any key areas of subcontract which fill capability gaps in the consortium

Following successful delivery of the project, explain:

• the plan within the consortium for forming longer-term partnerships based on the successfully outcomes of this project

• how the project will unlock technical and commercial opportunities beyond the core aims of this project

• what opportunities for future wider R&D activities in the auto industry you envisage as a result of this project

• how you will disseminate these outcomes in the public domain

Your answer can be up to 600 words long.

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 11. Benefits to the UK Supply Chain

How will the project support the UK automotive supply chain within and beyond your project consortium?

Describe:

• how this project will increase the consortium’s access to UK supplied content and evidence the opportunity to increase UK Bill of Materials (BOM) content against current position

• how this project impacts the sustainability and security of the UK supply chain through clustering, localisation, and growth

• the number of jobs safeguarded, created, changed or displaced, outside of the consortium partners

• further benefits for businesses outside of the consortium

• the lasting effect and scale of the benefits

• how the project will reduce supply chain risk

Your answer can be up to 400 words long.

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 12. Innovation and technical approach

Which elements of the project are technically innovative and how will these outcomes be achieved? Provide an overview of the technical approach the project will take, identifying the main objectives for this project.

Describe:

• the technically innovative elements of the project and evidence why they are innovative

• the current development status of elements of the project, for example, before the project starts and evidence any proof of concept or demonstration work undertaken prior to this application

• the targeted technical outcomes of the project, including their envisaged development status at the end of the project

• how the resulting technologies will compare to the best in class

• the technical steps through which these outcomes will be realised

• the digitalisation tools and techniques that you will deploy or develop

• the test and validation activities which will be completed during and after the project

• any expected resulting intellectual property (IP), including trade secrets and patents

 Your answer can be up to 600 words long.

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 13. Project management

What are the project deliverables, and how will you manage the project effectively?

Describe:

• the deliverables and the physical outputs from this project, clearly justifying quantities and responsibilities

• your approach to project management, identifying any major tools and mechanisms you will use to achieve a successful outcome

• your proposed work breakdown structure (WBS), showing a cost for each work package

• your project plan in enough detail to identify significant milestones and gateways, and any links or dependencies between work packages or milestones

• specific detail on how your project startup will be managed including resource availability and planned recruitment

• the project sponsors within each consortium partner

• the project team with key members profiled

• how escalation will be managed

Your answer can be up to 600 words long.

You must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 14. Risks

What are the main risks for this project? How will risk be collaboratively managed across the proposed project?

Describe:

• the main risks and uncertainties that could impact this project, including the technical, commercial, markets, managerial and environmental risks

• how you will mitigate these risks

• any key risks during the project startup phase and how they will be mitigated

• any project inputs that are critical to completion, such as resources, expertise, data sets and test facilities, for example, proving grounds

• any output likely to be subject to detailed New Product Introduction processes, including but not limited to, regulatory requirements, certification and ethical issues and how you will manage this

Your answer can be up to 400 words long.

You must submit a risk register as an appendix to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 15. Value for Money (VfM) workbook

The Value for Money (VfM) workbook and questions 15 to 20 of the application, relate to the economic value for money assessment.

You must download and complete the VfM workbook.

To complete the VfM workbook, you must complete the following steps:

1. Download the VfM workbook from question 15

2. Complete all tabs following the guidance in each worksheet

3. Enter data into the grey cells and select an option from a drop-down list in the orange cells

4. Add extra rows in the ‘Jobs’ worksheet (in the middle of rows of input cells to preserve the formatting) so you can define jobs separately for each project partner for the required number of national vocational qualification (NVQ) levels

5. Use blank lines to title project partners and group the jobs according to your preferences

6. You must upload the completed worksheet as an appendix to question 15

7. You must write 'Worksheet uploaded' as your response to this question

Your answer can be up to 100 words long.

Question 16. Additionality

Why does your project rely on this grant funding and why do you need the amount you have applied for?

Using the appendix to provide supporting evidence, explain:

• why your project cannot go ahead without this grant

• why your project cannot be funded internally or through other private sources providing supporting evidence, for example, notices of declined credit

• why this specific amount of grant funding is required, reference can be made to the financial summary table

• what would happen if your application was unsuccessful

• if you decided not to internally fund, explain the decision making process and provide evidence, such as any business case comparison (with or without this grant funding), internal rate of return analysis or other comparative financial analysis of the project with and without this grant funding

• if the project could not go ahead in the UK without this grant funding, where would it be located and why

• provide information about alternative locations and type and size of operations, expected cost structure, wages, building, transport, energy, any financial support available, the availability of a qualified workforce

Your answer can be up to 400 words long.

You must submit one appendix with evidence to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 17. Funding model

How is each partner funding their share of the project costs, and any follow on R&D and capital investments required to scale up production?

Explain the source of each project partners’ financial contribution to the project, for example:

• retained earnings

• external debt

• equity investment

• other funding sources such as government grants

Note: Match funding must be private funds, and not other UK Government grants. In accordance with this competition rules, project match funding must be greater than the sum of this grant and any other UK Government grants.

You must:

• explain how the consortium partners will fund any post project R&D and capital investment to commercialise the technology

• set out any risks and uncertainties around availability of funding for the project, and any required follow on investment

Your answer can be up to 400 words long.

You must submit one appendix with evidence of your funding sources to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

You must:

• explain how you calculated your project costs and anticipated post project investments in the relevant boxes in tab ‘Project expenditure’ of the VfM workbook

• provide a summary of the project costs, the financial contribution from each project participant and the grant funding required in the financial summary table in the application form

• declare any other funding from public bodies, including any tax relief, that relates to this project or application and that the consortium has applied for or received

• indicate the size of the funding received, the relevant body with details of the type of funding and conditions

Question 18. Project expenditure

How have you estimated the required investment in R&D, skills and capital for this project, and any follow on investment to commercialise the technology?

You must:

• explain your calculations and assumptions made to quantify the amounts of spending and investment required

• justify why your project costs and follow on investments are realistic estimates

Note: it is important that you explain your estimates of both direct project costs and any post project expenditure to commercialise the technology and scale up production. 

Your answer can be up to 400 words long.

You must submit one appendix with evidence and details of your calculation methods to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 19. Jobs

How have you quantified the number of jobs created or safeguarded by the project and as a result of any post project R&D and manufacturing activities?

You must:

• explain your calculations and assumptions made to quantify the number of jobs directly related to the project

• your explanation must also cover any jobs included in your VfM workbook that are the result of post project R&D and manufacturing activity that is directly related to the project

• explain why the number of jobs and salaries are realistic, considering productivity and efficiency gains

• for safeguarded jobs, explain and provide evidence to show that these jobs would be lost without government funding for this project

Your answer can be up to 400 words long.

You must submit one appendix with your evidence and details of your calculation methods to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 20. Sales and emissions

Provide further detail about the vehicle related information you have given in tab Sales and Emissions in the VfM workbook.

You must:

• justify the vehicles you have selected in the VfM workbook (vehicles 1 to 4)

• explain how you have quantified vehicle sales, what assumptions you have used in your sales forecast, and justify why the sales forecast is realistic

• explain why the comparator vehicles included in the VfM workbook are the best alternative for consumers by the time your technology reaches the market

• explain any assumptions used in establishing fuel or energy consumption and CO2 emissions of the comparator vehicles selected in the VfM workbook

• explain the specific contribution of this project to the future vehicle drivetrain, to quantify the impact of the overall emission savings your technology will achieve versus comparator vehicles

Your answer can be up to 400 words long.

You must submit one appendix with evidence and documentation of your sales forecast and justification of comparator vehicles to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

3. Finances

Each organisation in your project must complete their own project costs, organisation details and funding details in the application. Academic institutions must complete and upload a Je-S form.

For an overview on what costs you can claim, see our project costs guidance. Note this is general guidance, for specific guidance please see the eligibility section in this competition. You can also view our application finances video.

Assessment

Your application will be reviewed by five independent assessors based on the content of your application and their skills or expertise relevant to your project. All of the scores awarded will count towards the total score used to make the funding decision unless you are notified otherwise.

You can find out more about our assessment process in the General Guidance.

Interviews

If your application passes the first stage of assessment, the Department for Business and Trade (DBT) Value for Money (VfM) appraisers may want to call you to clarify the information you shared in the written economic assessment feedback questions.

The appraisers will talk to you about any of the following:

• project risks

• why grant funding is required for your project

• any anticipated technology spill-over benefits

• job projections

• expected vehicle sales

• CO2 savings

• project expenditure

The call will happen after you have given DBT your responses to their economic assessment feedback. This will be before the interviews, and we provisionally expect the calls to take place on 13 November 2025.

The APC will inform the lead contact of a one hour time slot for the call with DBT. The time slot is not flexible, due to the number of calls we need to make. We aim to keep calls to a maximum of four attendees from the applicant side to ensure the discussion is effective.

On the call we will want to talk to the person who filled out the VfM worksheet and anyone else needed to answer questions about the written economic assessment feedback responses. We will not ask representatives from each project partner to attend the call.

After the call and if your online application is assessed as eligible, you will be invited to attend an interview, where you must give a presentation. Your interview will take place during the week beginning 24 November 2025.

Before the interview and by the deadline stated in the invitation email, you must send:

• a written response to the DBT economic assessment feedback before the provisional call dates

• a written response to the technical assessors’ feedback

• a list of who will attend the interview

• your interview presentation slides

You must be aware that the dates for these submissions are different. You cannot send them together. You must send your written response to the DBT economic assessment feedback before the others, so that the VfM call can take place on 19 November 2025

You cannot make changes once these are submitted.

List of attendees

Agree the list with your consortium. Up to nine people from your project can attend, ideally one person from each organisation. They must all be available on all published interview dates. We are unable to reschedule slots once allocated.

Presentation slides

Your interview presentation must:

• use Microsoft PowerPoint

• be no longer than 30 minutes

• have no more than 30 slides

• not include any video or embedded web links

You cannot change the presentation after you submit it or bring any additional materials to the interview.

Written response to technical assessor feedback

This is optional and is an opportunity to answer the assessors’ concerns. It can:

• be up to 10 A4 pages in a single PDF or Word document – template to be provided

• include charts or diagrams as part of the 10 pages

All of the information including charts and diagrams must be legible at 100% zoom. If they are not they will not be considered.

Written response to the DBT economic assessment feedback

This is mandatory and is an opportunity to answer the assessors’ concerns. It must:

• be up to six A4 pages in a single PDF or Word document: template to be provided

• include charts or diagrams as part of the six pages

All of the information including charts and diagrams must be legible at 100% zoom. If they are not, they will not be considered.

Interview

Interviews will take place at the APC in Warwick. You should allow up to two and a half hours for your interview.

You must email a mature draft of the collaboration agreement ahead of your interview. After your presentation the panel will spend up to 60 minutes asking questions. You will be expected to answer based on the information you provided in your application form, presentation and the response to feedback.

After your interview

The panellists will individually score your application and these will be averaged for your overall interview score. This score will supersede the one you received from initial assessment unless stated otherwise in the competition brief. We will notify you whether you have been successful or not by email and you will receive feedback on your interview within a week of notification.

Economic assessment

This is carried out by professional economists employed by DBT, in both the written and interview stages. They assess whether the project is good value for money for taxpayers and the UK.

HM Treasury will only release grant funding if your project reaches an acceptable threshold of value for money. This analysis is quality assured by senior economists within DBT to ensure the judgement is an accurate and independent reflection of the information that has been provided.

Report on economic outputs

As a condition of project grant funding, you must provide DBT and APC with annual records which show the realised and expected economic outputs your project has produced.

You must provide robust, credible and timely data on your project’s progress. This data helps policymakers evaluate whether the programme is good value for money.

Each partner must:

• flag any information they consider too costly to collect

• agree report timings

• report on economic monitoring information annually, or at an alternative schedule agreed with APC, Innovate UK and DBT

You must provide other data if requested. Project monitoring and meetings will be carried out by representatives of Innovate UK, DBT and APC, and any other individuals as agreed with you.

Background and further information

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 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.

DRIVE35 Innovation is funded by the Department of Business and Trade and delivered in partnership with the Advanced Propulsion Centre and Innovate UK.

DBT will:

• fund all DRIVE35: innovation projects, subject to Ministerial agreement

• make a recommendation to Ministers to support funding if the benefit meets an acceptable level and all other assessment criteria are met

• formally monitor delivery of economic benefits including but not limited to post project delivery

• assess the delivery mechanism of the DRIVE35 Innovation competition to ensure it remains aligned with HMG processes and Ministerial steers, including the Industrial Strategy

• lead the delivery, design and monitoring of the programme implementation approach

• assess the benefit that the proposed project will deliver to the UK economy through value for money assessment

Formed in 2013 the Advanced Propulsion Centre (APC) accelerates the industrialisation of technologies which help to realise zero emission vehicles. It is at the heart of the UK Government’s commitment to end the country’s contribution to global warming by 2050.

APC will:

• work with consortia to support bid development

• support the competition process, including hosting both launch and guidance events and interviews

• support project start up and delivery once contracts are awarded, through APC staff

• monitor the impact of the project portfolio

• offer the opportunity for wrap around business support to awardees in readiness for commercialisation

• provide links to wider government support initiatives where appropriate

Innovate UK will:

• deliver the competition process and technical assessment framework

• support and manage applicant queries about the competition process

• issue and manage grant contracts

• provide formal assurance that projects are meeting their commitments once they are running (known as project monitoring)

• approve financial claims and issue funds

Where a project is linked to overseas investment in the UK, or export of goods from the UK, the Department for Business and Trade will also:

• provide a way for overseas businesses to contact the Department for Business and Trade staff in their own country, via knowledgeable staff at UK embassies and consulates

• support potential investors with sector specific information and facts about the UK economy

• provide support for investors looking for a UK location and data benchmarking to demonstrate the competitive position of the UK

• provide introductions to other government departments and partner organisations for businesses setting up in the UK for the first time or expanding their existing UK investments

• support business wishing to export through trade missions and customer connections, supported by UK embassies and consulates

• offer export finance support to businesses wishing to trade overseas, through the Department for Business and Trade’s UK Export Finance (UKEF) organisation

• provide ongoing after care customer support through a dedicated relationship manager

APC can help by:

• providing general guidance regarding interpretation of competition rules and guidelines on an informal basis

• helping your business to structure the bid development process

• explaining common pitfalls

• answering questions about whether or not your project is within scope

Any information received by Innovate UK for this competition may be shared with APC and DBT. Innovate UK has a data sharing agreement in place with these bodies which safeguards both personal and commercial data in accordance with data protection legislation.

 Extra help

Note that the APC’s role is to provide indicative guidance rather than formal advice. To contact APC email info@apcuk.co.uk.

Briefing recording and slides

Pre-recorded briefing event: watch the recording

Briefing slides are available to download.

DRIVE35 Innovation Fund Collaborate - Applicant Briefing Slides.pdf (opens in a new window)

What happens if you receive a grant offer

If you have passed your initial assessment and have received an email with a grant offer, you will be asked to complete the project set up process on the Innovation Funding Service (IFS).

We will ask for information that will allow us to undertake mandatory checks on your organisation and the eligibility of your costs, as well as review the documentation for your project.

You must follow the unique link embedded in your email notification. This takes you to your project's dedicated IFS Set Up portal, where we gather the information required to set up your project.

Watch our videos on what steps there are before a project starts and how successful applicants receive their funding or read more about Project Setup in our General Guidance.

If your application is unsuccessful

If you are unsuccessful with your application this time, you can view feedback from the assessors. This will be available to you on your IFS portal following notification.

Sometimes your application will have scored well, and you will receive positive comments from the assessors. You may be unsuccessful as your average score was not above the funding threshold or your project has not been selected under the portfolio approach if this is applied for this competition.

We would like to remind you that eligible non-funded business can still benefit from fully funded and bespoke support from the Innovate UK Business Growth service.

Find a project partner

If you want help to find a project partner, contact Innovate UK Business Connect.

Support for SMEs from Innovate UK Business Growth service

Innovate UK Business Growth helps innovation focused businesses make the best strategic choices and access the right resources, in order to grow and ultimately achieve scale.

Our innovation and growth specialists provide our fully funded and bespoke support to clients nationwide. Visit the service’s website to discover whether you could benefit from this advisory support, which is available to Innovate UK funded and non-funded businesses alike.

Protecting your innovation

A Secure Innovation campaign has been developed to help founders and leaders of innovative startups protect their technology, competitive advantage, and reputation.

This was developed by UK’s National Protective Security Authority (NPSA) and the National Cyber Security Centre (NCSC).

Data sharing

This competition is jointly operated by Innovate UK, the Department of Business and Trade (DBT) and Advanced Propulsion Centre UK (APC) (each an ‘agency’).

Any relevant information submitted and produced during the application process concerning your application can be shared by one agency with the other, for its individual storage, processing and use.

This means that any information given to or generated by Innovate UK in respect of your application may be passed on to DBT and APC and vice versa. This would include, but is not restricted to:

• the information stated on the application, including the personal details of all applicants

• scoring and feedback on the application

• information received during the management and administration of the grant, such as Monitoring Service Provider reports and Independent Accountant Reports

Innovate UK may also share any relevant information submitted and produced during the application process concerning your application with Innovate UK’s national and regional UK third parties and partners who may contact you. For more information see how we handle grant applicant and grant holder data.

Innovate UK, DBT and APC are directly accountable to you for their holding and processing of your information, including any personal data and confidential information. Data is held in accordance with their own policies. Accordingly, Innovate UK, Innovate UK Business Connect, DBT and APC, will be data controllers for personal data submitted during the application.

Innovate UK’s Privacy Policy

Innovate UK Business Connect Privacy Policy

Department of Business and Trade’s (DBT) Privacy Policy

Advanced Propulsion Centre UK’s (APC) Privacy Policy

Innovate UK complies with the requirements of UK GDPR and the Data Protection Act 2018, and is committed to upholding data protection legislation, and protecting your information in accordance with data protection principles.

The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.

Contact us

If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.

Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

Innovate UK or any of our partners will not tolerate abusive language in any written or verbal correspondence, applications, social media or any other form that might affect staff.