DRIVE35 Innovation Fund: Collaborate 2
Innovate UK · United Kingdom (all project work must be carried out in the UK and results exploited in or from the UK).
Grant funding for late-stage collaborative research and development (R&D) projects that design, develop and manufacture technologies supporting the UK's transition to zero emission vehicles (ZEVs) and a net zero automotive industry.
Summary
Deadline
18 Mar 2026
Updated
16 Oct 2026
Grant funding for late-stage collaborative research and development (R&D) projects that design, develop and manufacture technologies supporting the UK's transition to zero emission vehicles (ZEVs) and a net zero automotive industry.
Eligibility
Applicant types
See eligibility requirements
Industries
Automotive innovation, vehicle electrification, zero emission vehicles, batteries, advanced manufacturing, automotive supply chain technologies.
Match funding
Minimum 50% match funding required from project partners.
Eligible applicants
UK registered organisations participating in a collaborative consortium. The lead applicant must be a UK registered business claiming grant funding.
Funding and scope
Benefit amount
£2.5 million to £25 million grant funding per project
Total fund available
£33,000,000
Funding intensity
As per Innovate UK industrial research and experimental development funding rules.
Payment type
Not specified
Eligible scope
Projects must develop technologies supporting zero emission vehicles, strengthen UK automotive manufacturing capability and supply chains, and demonstrate clear commercialisation potential.
Eligible expenses
- Eligible R&D costs including staff, materials, manufacturing innovation, testing, development, subcontracting and project management.
Ineligible costs
Not specified
Application and risks
Application platform
Innovation Funding Service (IFS)
Competitiveness
Approximately 50% success rate based on previous competitions.
Decision timeline
Applicants notified on 22 June 2026.
Assessment process
Independent assessor review followed by an economic value-for-money assessment and interview for shortlisted applicants.
Application sections
- Project details, application questions and financial information.
Application components
Not specified
Decision risks
Applications may be rejected if eligibility requirements are not met, funding rules are breached, project scope is outside the competition, or consortium requirements are not satisfied.
Timeline and partners
Opening date
5 Jan 2026
Project duration
18 to 36 months
Project start
1 Oct 2026
Project end
Not specified
Co-funders
- Department for Business and Trade (DBT); Advanced Propulsion Centre UK (APC UK)
Collaboration rules
- Collaboration is mandatory. Consortium must include at least one UK registered SME claiming grant funding. At least one additional UK registered organisation must participate.
Consortium requirements
- Consortium must include a vehicle manufacturer or Tier 1 supplier supplying parts directly to an Original Equipment Manufacturer (OEM).
Additional guidance
Document research last revised 2026-08-04.
Next Expected Opening
Expected in 2027 as the next DRIVE35 collaborative funding round, subject to government funding and Innovate UK programme announcements. (UK Research and Innovation)
Research Category
Industrial Research and Experimental Development
Technology Themes
Vehicle electrification, advanced propulsion, software-defined vehicles, electrical/electronic architectures, automated driving systems, advanced manufacturing and production technologies.
Research Organisation Funding
Research organisations conducting non-economic activities may receive funding for up to 30% of total eligible project costs.
Subcontractors
Allowed where justified. Overseas subcontractors require strong justification.
Interview Stage
Yes. Selected applicants invited to interviews beginning 18 May 2026.
Key Requirements
Projects must strengthen the UK automotive supply chain, support commercialisation of zero emission vehicle technologies, demonstrate UK economic impact, and align with UK industrial strategy priorities.
Important Notes
Projects must not begin before Grant Offer Letter approval. Funding is subject to budget availability and portfolio balancing decisions by Innovate UK. (Innovation Funding Service)
Application deadline in source document
18 March 2026, 11:00 AM UK time (Closed) (UK Research and Innovation)
Official source
Quick facts
- Status
- Closed
- Deadline
- 18 Mar 2026
- Funding amount
- £2.5 million to £25 million grant funding per project
- Funding band
- Not specified
- Funding type
- Grant
- Payment type
- Not specified
- Audience
- See eligibility requirements
- Industry
- Automotive innovation, vehicle electrification, zero emission vehicles, batteries, advanced manufacturing, automotive supply chain technologies.
- Last updated
- 16 Oct 2026
- Published
- 9 Jan 2026