DRIVE35 Innovation Fund: Demonstrate 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 demonstration research and development (R&D) projects that develop product or process demonstrators supporting the UK's transition to zero emission vehicles (ZEVs) and a net zero automotive industry. (Innovation Funding Service)
Summary
Deadline
11 Mar 2026
Updated
16 Oct 2026
Grant funding for late-stage demonstration research and development (R&D) projects that develop product or process demonstrators supporting the UK's transition to zero emission vehicles (ZEVs) and a net zero automotive industry. (Innovation Funding Service)
Eligibility
Applicant types
See eligibility requirements
Industries
Automotive innovation, zero emission vehicles, batteries, electrification, automotive manufacturing and supply chain technologies.
Match funding
Projects must provide at least 50% match funding.
Eligible applicants
UK businesses, academic institutions, charities, not-for-profit organisations, public sector organisations and research and technology organisations (RTOs).
Funding and scope
Benefit amount
£500,000 to £1,500,000 grant funding request per project
Total fund available
Up to £33,000,000
Funding intensity
Funding rates follow Innovate UK Industrial Research and Experimental Development rules.
Payment type
Not specified
Eligible scope
Projects must develop a demonstrator product or process that increases manufacturing capability and commercial exploitation potential for zero emission vehicle technologies or manufacturing.
Eligible expenses
- Staff costs, technology development, materials, testing, validation, demonstrator development, subcontracting and other eligible R&D costs.
Ineligible costs
Not specified
Application and risks
Application platform
Innovation Funding Service (IFS)
Competitiveness
Approximately 30% 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.
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, projects fall outside scope, value for money is insufficient or funding rules are not followed.
Timeline and partners
Opening date
5 Jan 2026
Project duration
9 to 12 months
Project start
1 Sept 2026
Project end
31 Aug 2027
Co-funders
- Department for Business and Trade (DBT); Advanced Propulsion Centre UK (APC UK)
Collaboration rules
- Projects may be single applicant or collaborative. Academic institutions cannot lead or apply independently.
Consortium requirements
Not specified
Additional guidance
Document research last revised 2026-08-04.
Next Expected Opening
Expected in 2027 under the next DRIVE35 Demonstrate competition, subject to Innovate UK and DBT programme announcements. (GOV.UK)
Research Category
Industrial Research and Experimental Development
Technology Themes
Zero emission vehicle technologies, Future Vehicle Innovation, Software Defined Vehicles, Electrical/Electronic Architectures, advanced automotive manufacturing.
Research Organisation Funding
Research organisations undertaking non-economic activity may receive funding for up to 30% of total eligible project costs.
Subcontractors
Permitted. Normally UK-based unless overseas subcontracting is fully justified.
Interview Stage
Yes. Shortlisted applicants invited to interview between 5 May and 15 May 2026.
Key Requirements
Projects must demonstrate innovation in zero emission vehicle technologies or manufacturing, strengthen the UK automotive supply chain, provide a clear commercialisation plan and deliver measurable UK economic impact.
Important Notes
A 3.5% industrial contribution on grant funding is payable to the Advanced Propulsion Centre by funded partners. Demonstrator outputs may be showcased at future APC or CENEX events. Projects must not start before Grant Offer Letter approval. (Innovation Funding Service)
Application deadline in source document
11 March 2026, 11:00 AM UK time (Closed) (Innovate UK Business Connect)
Official source
Quick facts
- Status
- Closed
- Deadline
- 11 Mar 2026
- Funding amount
- £500,000 to £1,500,000 grant funding request per project
- Funding band
- Not specified
- Funding type
- Grant
- Payment type
- Not specified
- Audience
- See eligibility requirements
- Industry
- Automotive innovation, zero emission vehicles, batteries, electrification, automotive manufacturing and supply chain technologies.
- Last updated
- 16 Oct 2026
- Published
- 8 Jan 2026