DRIVE35 Innovation Fund

Transforming the UK’s automotive industry.

The DRIVE35 (Driving Research and Investment in Vehicle Electrification) Innovation Fund aim to transform the UK’s automotive industry by supporting R&D and the commercial scale up of innovative zero emission vehicle technologies, and unlocking capital investment in zero emission vehicles, batteries and their wider supply chain. 

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DRIVE35 In Short

Grant funding Grant funding

£2.5 million to £25 million

Funding rate Funding rate

Minimum 50% match funding

Application deadline Application deadline

1 October 2025 at 11:00am

Project duration Project duration

18-36 months (must end by 28 February 2029)

Project type Project type

Late-stage R&D targeting direct commercialisation at the end of the project (TRL7-8)

Beneficiaries Beneficiaries

Collaborative and business-led

DRIVE35 Themes

Your proposal must align to at least 1 of the 3 scope themes:

You must focus on product and process innovations that contribute to achieving zero emissions for on board vehicle applications in one or more of the following areas:

  • 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, we will only fund project proposals which aim to achieve zero harmful tailpipe emissions utilising non-fossil fuels
  • Internal Combustion Engines (ICE) for off road applications, we will fund 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

R&D projects which use innovations to enable productivity and cost competitiveness and reduce embedded carbon. These will be across all aspects of zero emission vehicle and technology manufacturing and their associated supply chain in one or more of the following areas:

  • Digital Transformation: integration of digital tools within the manufacturing process, for example, the use of AI, digital twins, vision systems and internet of things (IoT)
  • manufacturing process decarbonisation: switching processes to use non fossil energy sources or innovations enabling reduced energy consumption within manufacturing processes including capture and reuse
  • Lean Manufacturing: implementation of innovative lean principles to improve circularity of materials used in processes, reduce their environmental impact and improve efficiency including the use of advanced automation techniques
  • Supply Chain Development: initiatives for suppliers to improve their processes, capability and capacity for R&D and subsequent industrialisation, for example, flexible production lines to service multiple customers to lower capital investment as well as UK capability building to enable market access, and sustainability

Focus on innovations in software and E/E architecture to enhance zero emission vehicle functionality and reduce time to market. These projects will leverage the UK’s unique innovation skills for global product competitiveness, in one of more of the following areas:

  • Integrated E/E systems: development of scalable and flexible E/E architectures, including software platforms and hardware design that support advanced vehicle functionalities and future technologies
  • validation and verification technology: use of digital twins and in the loop (xIL) innovations to create comprehensive models of E/E systems, enabling rapid simulation, optimisation, and validation of interconnected systems
  • embedded Software Development: innovations, including in the creation of, embedded software that decrease time to market, enhance vehicle performance, safety, security and connectivity
  • network communications: development of robust network communication systems to support the integration of various electronic components and systems within the vehicle
  • Control Systems: advanced control systems that improve vehicle functionality and performance

Is your project eligible?

  • Lead applicant must be a UK registered business of any size.
  • Consortium must include a vehicle manufacturer or Tier 1 supplier who supplies parts directly to an original equipment manufacturer (OEM), and at least one UK registered SME. 
  • Your total grant funding request must be no more than 50% of your total eligible project costs. This is regardless of your individual partners’ grant claims. 
  • A minimum of 70% of your project’s total project costs must be incurred by commercial organisations.
  • All project work must be carried out in the UK.
  • Applicants must intend to exploit the results from or in the UK

Our Approach

At PNO Innovation, we help turn ideas into fundable projects through a structured and strategic approach offering a complete, end-to-end service to maximise the impact and viability of each initiative.

Our experts support you at every stage of the process, from initial analysis to execution, including:

  • Evaluation and positioning of the project based on market trends and policy objectives
  • Definition of the participation strategy and structuring of the right consortium
  • Comprehensive support with funding applications, and technical, administrative, and financial management.

Start your DRIVE35 application

Do you have project plans that may be eligible for DRIVE35 grant? Tell us about them! Please fill out the fields below so we can help you set up your project efficiently and successfully apply.

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