Up to £20 Million for Zero-Emission Vehicle Innovation – DRIVE35 Collaborate 3

The DRIVE35 Innovation Fund: Collaborate 3, delivered by Innovate UK as part of the Department for Business and Trade’s DRIVE35 programme, provides major grant funding for late-stage collaborative automotive R&D projects. It aims to accelerate zero-emission vehicle technology and strengthen automotive manufacturing and supply chains in the UK.

Here’s what you can expect:

• £2.5 million–£20 million in grant funding per project

• A share of up to £20 million available overall

• Grant funding can cover no more than 50% of total eligible project costs

• Projects therefore require at least 50% match funding

• Projects lasting 18–36 months

• Funding for late-stage R&D targeting direct commercialisation

• Projects should reach approximately TRL 7–8 or MRL 6–7

• Funding can support batteries and energy storage, electric drivetrains, power electronics, fuel cells, hydrogen systems and lightweight vehicle technologies

• Also supports automotive manufacturing innovation including AI, digital twins, automation, decarbonisation and supply-chain development

• A third theme supports software-defined vehicles and advanced electrical/electronic architectures.

Who can apply?

• A UK-registered business of any size must lead

• Projects must be collaborative

• The consortium must include a vehicle manufacturer or Tier 1 supplier

• At least one UK-registered SME claiming grant funding must participate

• Partners can include businesses, universities, charities, nonprofits, public-sector organisations and RTOs

• At least 70% of total project costs must be incurred by commercial organisations

• Funded work must primarily take place in the UK and results must be intended for exploitation in the UK.

Application deadline: 16 September 2026 at 11:00am UK time. Projects must start from 1 May 2027.