New DRIVE35 Funding Competitions: Opportunities for Zero Emission Vehicle Innovators

The UK government has launched six new innovation competitions under the DRIVE35 (Driving Research & Investment in Vehicle Electrification) programme, a £2.5b capital and R&D initiative designed to accelerate the transition to Zero-Emission Vehicles (ZEVs). This includes £500 million of extended R&D funding through to 2035.

Delivered by Innovate UK in partnership with the Advanced Propulsion Centre (APC) and funded by the Department for Business and Trade (DBT), the DRIVE35 Innovation Fund supports strategically important technologies across the ZEV supply chain, from feasibility studies to commercial-scale manufacturing.

Below is a breakdown of each competition to help SETsquared founders assess relevance and readiness:

DRIVE35 Innovation Fund: Collaborate

Purpose: Support collaborative R&D projects focused on advancing ZEV technologies for on-vehicle applications.

Key facts:

• Competition opens: 15 July 2025
• Competition closes: 25 September 2025 at 11:00 am
• Total funding available: Up to £10 million
• Funding type: Grant
• Project grant size: £500,000 to £1.5 million
• Project duration: 6 to 12 months, starting by 1 March 2026

Eligible organisations:

• UK-registered businesses of any size (must collaborate with at least one SME)
• Up to five project partners

Funding contribution:

• Up to 70% for SMEs
• Up to 50% for large businesses

Scope includes:

• Battery, fuel cell, electric machines
• Lightweighting
• Power electronics and drivetrains
• Hydrogen storage
• Circularity and manufacturing processes

Key outcomes expected:

• Pre-commercial R&D
• Clear path to industrial application
• Contribution to UK ZEV supply chain

Visit this page for full info: https://apply-for-innovation-funding.service.gov.uk/competition/2244/overview/84f81488-4936-4551-a315-7ec40cf1065d

DRIVE35 Innovation Fund: Demonstrate 

Purpose: Fund large-scale, late-stage R&D to demonstrate real-world performance of ZEV technologies.

Key facts:

• Competition opens: 15 July 2025
• Competition closes: 25 September 2025 at 11:00 am
• Total funding available: Up to £20 million
• Project grant size: £2 million to £5 million
• Project duration: Up to 18 months

Eligible organisations:

• UK-registered businesses of any size (must include at least one SME)
• Collaborative projects with up to five partners

Funding contribution:

• Up to 60% for SMEs
• Up to 50% for large businesses

Scope includes:

• On-vehicle zero-emission technologies (battery, fuel cells, hydrogen storage, etc.)
• Projects must involve real-world testing or pilot deployment
• Demonstration must validate commercial potential and market readiness

Key outcomes expected:

• Industrial-scale commercialisation plans
• Evidence of UK manufacturing impact
• Contribution to the UK's Industrial Strategy

DRIVE35 Scale-up: Feasibility Studies 

Purpose: Enable feasibility studies into UK-based manufacturing facilities for ZEV technologies.

Key facts:

• Competition opens: 14 July 2025
• Competition closes: 3 September 2025 at 11:00 am
• Total funding available: Up to £5 million
• Project grant size: £150,000 to £750,000
• Project duration: Up to 9 months
• Start by: 1 January 2026

Eligible organisations:

• UK-registered businesses (any size)
• Projects can be single or collaborative

Funding contribution:

• Up to 60% for SMEs
• Up to 50% for large businesses

Scope includes:

• Business case development for future ZEV-related manufacturing facilities
• Pilot, demonstration or industrial scale planning
• Topics include: batteries, hydrogen systems, ZEV assembly, digital/lean manufacturing

Key outcomes expected:

• Investment-ready business case
• Facility layout and costing models
• UK supply chain benefits and net zero alignment

Visit this page for full info: https://apply-for-innovation-funding.service.gov.uk/competition/2247/overview/53da287a-c141-48d2-a3eb-f854e14c6578