Drive35 innovation fund: demonstrate 2
Innovate UK · United Kingdom
Grant funding for late-stage demonstration research and development projects that develop a product or process demonstrator supporting the UK’s transition to zero emission vehicles and a net zero automotive industry.
Summary
Deadline
11 Mar 2026
Complexity
Medium
Time to apply
20-60 hours
Updated
9 Jun 2026
Grant funding for late-stage demonstration research and development projects that develop a product or process demonstrator supporting the UK’s transition to zero emission vehicles and a net zero automotive industry.
Eligibility
Applicant types
Not specified
Business size
SME, Large
Industries
Automotive innovation and manufacturing technologies related to zero emission vehicles and their supply chains.
Match funding
Required
Requirements
UK registered organisations. The lead organisation must be a UK registered business of any size. Projects must develop a demonstrator product or process showing increased capability and commercial exploitation potential related to zero emission vehicle technologies or manufacturing.
Eligible applicants
UK registered organisations.
Funding and scope
Benefit amount
Share of up to £33 million (late-stage demonstration R&D)
Total fund available
£33,000,000
Funding intensity
Industrial research: up to 70% for micro or small organisations, 60% for medium organisations, 50% for large organisations. Experimental development: up to 45% for micro or small organisations, 35% for medium organisations, 25% for large organisations.
Payment type
Reimbursement (in arrears)
Eligible scope
Projects must develop a demonstrator product or process showing increased capability and commercial exploitation potential related to zero emission vehicle technologies or manufacturing.
Eligible expenses
- Eligible project costs related to R&D, technology development, testing, validation and demonstrator development activities.
Ineligible costs
- Costs not eligible under DRIVE35 demonstrate 2 IFS competition guidance.
Application and risks
Application platform
Innovation Funding Service (IFS).
Competitiveness
Closed / Not accepting applications
Decision timeline
Applicants notified on 22 June 2026.
Assessment process
Applications are reviewed by independent assessors followed by an economic value-for-money assessment.
Application sections
- Project details, application questions and financial information.
Application components
Not specified
Decision risks
Applications may be rejected if they fall outside scope, fail eligibility requirements, do not pass economic value-for-money assessment, or do not comply with funding rules.
Timeline and partners
Opening date
Not specified
Project duration
9 to 12 months
Project start
31 Aug 2026
Project end
30 Aug 2027
Co-funders
- Department for Business and Trade (DBT)
- Advanced Propulsion Centre UK (APC)
Collaboration rules
- Projects can be single-applicant or collaborative. Academic institutions cannot lead or apply alone.
Consortium requirements
- Single applicants and collaborations permitted; lead must be UK registered business of any size.
Additional guidance
[{"label":"Grant Amount","value":"£500,000 to £1,500,000 grant funding request"},{"label":"Eligible Organisations","value":"Businesses of any size, academic institutions, charities, not-for-profit organisations, public sector organisations, and research and technology organisations."},{"label":"Research Category","value":"Industrial research and experimental development projects."},{"label":"Technology Themes","value":"Promote Zero Emission Vehicle Technologies; Enhance Manufacturing Competitiveness; Future Vehicle Innovation including Software Defined Vehicles and Electrical/Electronic architectures."},{"label":"Subcontractors","value":"Subcontractors are allowed and must normally be UK based unless justification is provided for overseas subcontractors."},{"label":"Interview Stage","value":"Yes. Applicants may be invited to interviews between 5 May 2026 and 15 May 2026."},{"label":"Key Requirements","value":"Projects must demonstrate innovation in zero emission vehicle technologies or manufacturing, support the UK automotive supply chain, and target post-project commercialisation."},{"label":"Renewal Rules","value":"Organisations may be involved in multiple applications."},{"label":"Important Notes","value":"A 3.5% industrial contribution on grant funding is payable to the Advanced Propulsion Centre by all partners receiving grant funding. Demonstrator outputs may be showcased at the 2027 CENEX Expo."}]
Quick facts
- Status
- Closed
- Deadline
- 11 Mar 2026
- Funding amount
- Share of up to £33 million (late-stage demonstration R&D)
- Funding band
- Large (£5M+)
- Funding type
- Grant
- Payment type
- Reimbursement (in arrears)
- Audience
- Mixed
- Industry
- Automotive innovation and manufacturing technologies related to zero emission vehicles and their supply chains.
- Last updated
- 9 Jun 2026
- Published
- 7 Jan 2026