DRIVE35 funding: all you need to know

The transition to zero-emission vehicles represents a huge opportunity for the UK auto sector. It’s a chance to fund British innovation and attract inward investment, setting up for future economic growth. 

The government launched DRIVE35 (Driving Research & Investment in Vehicle Electrification) to support the automotive industry in this transition. DRIVE35 is an expanded and more ambitious take on the Automotive Transformation Fund, a programme that struggled to deliver on its aims due to numerous challenges, including the market-readiness for electric vehicles. 

DRIVE35 is ambitious, with £2.5 billion available for R&D projects in the development of zero-emission vehicles. It is designed to be wide-reaching, targeting manufacturers as well as consumers with initiatives to address demand issues. The vision is to build a globally competitive electric vehicle supply chain and transform manufacturing processes.  

What is DRIVE35 innovation funding?

DRIVE35 is a government funding programme designed to support UK automotive businesses over the next decade. It aims to generate thousands of jobs, grow the economy and ensure the UK’s position at the forefront of zero-emission vehicle development.  

There is the overarching DRIVE35 innovation fund, and then three separate strands that focus on different project scopes:  

• Collaborate = late-stage, collaborative R&D to accelerate towards commercialisation 

• Demonstrate = building a product/process in earlier stages of development 
• Mobilise (not yet live) = early-stage accelerator programme for SMEs, start-ups, and spinouts

What is DRIVE35 Scale-up funding?

The scale-up fund is specifically designed to bridge the gap between innovation and transformation. This critical phase of product or process development is filled with inherent risk and often referred to as the “valley of death”.  

By supporting the development of new pilot-scale and demonstration-scale “first-of-a-kind” production processes and facilities, this fund encourages both public and private sector investment to enable safe passage through the “valley of death”.

What are the fund’s objectives?

DRIVE35 aims to support UK-based manufacturers in the transition to electric vehicles. In order to do this, it must tackle head-on challenges around the extraction and processing of rare-earth minerals to build national resilience and ensure global competitiveness. It’s not enough to focus solely on manufacturing transformation. Consumer demand and infrastructure around zero-emission vehicles are in the fund’s scope. 

DRIVE35 aims to: 

• Drive economic growth, generating jobs and wealth across the UK 

• Help British firms remain competitive in a global market 

• Unlock inward investment 
• Cut millions of tonnes of CO2 emissions.

Which businesses are eligible for Drive35?

To qualify for DRIVE35 funding, you must be a UK-registered business. The newly improved competitions are designed to benefit auto businesses of all sizes and maturities, spanning “small-scale innovators to large-scale established global companies.”  

The government wants to empower cutting-edge startups as well as provide support all the way up to established multi-billion-pound gigafactories. 

Which projects are eligible for DRIVE35?

DRIVE35 is designed to support a wide spectrum of projects, providing funding for collaborative and individual business R&D projects. It covers both early-stage and late-stage R&D projects involving innovative technologies and processes.  

Eligible projects are those that help the transition to zero-emission vehicle manufacturing, including innovative work on electric vehicles, batteries and the associated supply chains. These projects cover the design, development and manufacturing of strategically important technologies, including:    

• 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 (only project proposals which aim to achieve zero harmful tailpipe emissions utilising non-fossil fuels will be funded) 

• ICE for off road applications, (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 

The funding will support pilot R&D projects which:  

• improve productivity  

• improve cost competitiveness  

• reduce embedded carbon 

• focus on software-defined vehicles  

• develop new electrical and electronic architectures 

How and when to apply for DRIVE35

There is one DRIVE35 competition currently open:  

• Collaborate: Coming back soon. Applications open twice a year – find out more on the APC website. 

• Demonstrate: Coming back soon. Applications open twice a year – find out more on the APC website. 

• Mobilise: Coming soon. Find out more on the APC website.    

• Scale-Up Fund: Open for applications. Apply now on the Innovation Funding Service or find out more on the APC website. 

All applications are reviewed by independent assessors with expertise matched to your project. DBT will carry out a value for money assessment. 

How ForrestBrown can support your DRIVE35 application

ForrestBrown’s grant advisory team combines technical and financial expertise with a track record of success in securing funding. Our team is on hand to help you through every step of the DRIVE35 application process. We start with a workshop to assess your project or projects’ feasibility and then support you through the DRIVE35 application process and beyond into third party due diligence.