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ClosedUpdated 16 Oct 2026

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

Read the funding authority guidance

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