Grant Details

https://www.ukri.org/opportunity/drive35-scale-up-feasibility-studies/

Grant Analysis

Purpose & Target

The DRIVE35 Scale-up: Feasibility Studies grant aims to support detailed feasibility studies for the deployment of UK-based manufacturing facilities for zero emission vehicle technologies. This grant is designed to help UK businesses, regardless of their size, create investment-ready business cases to advance their readiness for manufacturing at targeted production maturity and volume within the zero-emission vehicle sector. This is a SECTOR-SPECIFIC grant, focused exclusively on the automotive industry's transition to zero-emission vehicles. The geographic scope is strictly UK-based, requiring all project work and exploitation of results to occur within the UK. Key filtering criteria for initial screening are: being a UK registered business, seeking funding for a feasibility study in zero-emission vehicle manufacturing, and operating within the specified budget range (£150,000 - £750,000). This is part of the ongoing DRIVE35 programme, indicating a long-term commitment to transforming the UK's automotive industry towards electrification.

Financial Structure

The DRIVE35 Scale-up: Feasibility Studies grant offers significant financial support with specific parameters: Funding Amounts and Limits
  • Total Fund: Up to £5,000,000 has been allocated for this competition.
  • Project Grant Request Range: Your project's total eligible grant funding request must be between £150,000 (minimum) and £750,000 (maximum).
Funding Rates and Co-financing
  • Grant Type: Funding will be provided in the form of a grant.
  • Funding Rates: The percentage of eligible project costs covered by the grant depends on your organization's size:
    • SMEs (Micro, Small, or Medium-sized organizations): Up to 60% of your eligible project costs.
    • Large Organizations: Up to 50% of your eligible project costs.
  • Co-financing Requirement: The balance between your total project costs and the grant amount awarded must be funded by your organization. For example, if you are a large organization requesting £300,000 in grant, your total eligible project costs must be a minimum of £600,000.
Eligible and Ineligible Costs
  • Eligible Costs: You must only include eligible project costs in your application. General guidance on eligible project costs is available from Innovate UK, but specific guidance for this competition should be reviewed in the eligibility section.
  • Ineligible Costs: Projects that request a grant greater than the specified maximum percentages (60% for SMEs, 50% for large organizations) will not be funded.
Payment Mechanisms and Requirements
  • Project Start: You must not start your project until your Grant Offer Letter has been approved by Innovate UK.
  • Financial Guarantees: Innovate UK will conduct financial viability and eligibility tests to confirm your organization is not in financial difficulty.
Indirect Costs and Other Contributions
  • Industrial Contribution to APC: Each participant receiving a grant will be required to pay an industrial contribution to the Advanced Propulsion Centre UK (APC) operating budget. This is set at 3.5% and is payable on each grant received.
Subsidy Control
  • Scheme: This funding is offered under the Research, Development and Innovation Streamlined Subsidy Scheme (SC10780), in line with the Subsidy Control Act 2022.
  • Compliance: You must ensure the funding awarded is compliant with all current Subsidy Control legislation applicable in the United Kingdom.
  • State Aid: EU State aid rules apply only in limited circumstances; applicants should check the Windsor Framework if these rules apply to their organization and take independent legal advice if unsure.
Important Notes
  • Innovate UK reserves the right to adjust funding allocations under exceptional circumstances, such as policy changes or broader government funding decisions.
  • Innovate UK may withhold a grant payment at any time if you have any outstanding sums due in relation to other projects.

Eligibility Requirements

To be eligible for the DRIVE35 Scale-up: Feasibility Studies grant, your organization must meet the following strict criteria: Organizational Eligibility
  • Eligible Organization Type: Your organization must be a UK registered business of any size. This means you can be a startup, SME, or a large enterprise. Organizations such as research technology organizations (RTOs), charities, not-for-profit organizations, public sector organizations, or research organizations are not eligible to lead a project but can participate as subcontractors.
  • Applicant Type: This competition is open to single applicants only. Consortium applications are not permitted.
  • Geographic Requirements: All project work must be carried out in the UK. The results from your project must also be intended for exploitation from or in the UK.
  • Financial Viability: Innovate UK will conduct financial viability and eligibility tests. Organizations considered to be in financial difficulty are not eligible for funding.
  • Previous Grant Performance: You will not be awarded funding if you have:
    • Failed to exploit a previously funded project.
    • An overdue independent accountant's report.
    • Failed to comply with grant terms and conditions.
    • Overdue industrial contribution payments to the Advanced Propulsion Centre UK (APC).
  • Capacity: While there are no restrictions on the number of applications an eligible organization can lead, successful applicants will need to confirm they have the capacity to run multiple projects simultaneously if applicable.
Project-Specific Requirements
  • Project Location: The entire project work must be carried out in the UK.
  • Project Duration: Your project must last up to nine months.
  • Project Start and End Dates: Projects must start by 1 January 2026 and end by 31 August 2026. Projects must always start on the first of the month, even if it's a non-working day.
  • Subcontractors: Subcontractors are allowed and can be from anywhere in the UK, selected through your usual procurement process. If using overseas subcontractors, you must provide a detailed justification in your application, including evidence of why UK contractors could not be used. Cheaper cost is not a sufficient reason for using an overseas subcontractor. All subcontractor costs must be justified and appropriate to the total eligible project costs.
Exclusion Criteria and Disqualifying Factors
  • Project Scope: Applications will not be funded if they:
    • Request a grant greater than 60% of total project costs for an SME or 50% for a large business.
    • Are focused on technology feasibility, technical research, or technical product development (this grant is specifically for manufacturing facility feasibility).
    • Do not have a robust future plan to enter the zero-emission vehicle supply chain.
    • Are not aligned with the UK Industrial Strategy.
    • Are focused on the development or production of low carbon fuels.
    • Are not of future benefit to the automotive sector.
    • Are focused on technologies or processes which are too technologically immature to scale with increasing market demand.
    • Are focused on fossil-fueled internal combustion technology.
    • Are focused on the production of hydrogen (unless related to fuel cell systems/storage, clarification needed).
    • Are focused on off-vehicle charging infrastructure.
    • Are focused primarily on the development of digital or data technologies (unless for productivity/cost competitiveness in manufacturing processes).
    • Are focused on small personal mobility applications such as e-scooters, e-bikes, or other low-powered mobility devices.
  • Subsidy Control: Innovate UK is unable to award organizations if funding would expose Innovate UK to UK Sanctions. Funding must comply with the Subsidy Control Act 2022. Projects dependent on export performance or domestic inputs usage will not be funded.

Application Process

Applying for the DRIVE35 Scale-up: Feasibility Studies grant involves a structured process with clear deadlines and required documentation. Application Timeline and Deadlines
  • Publication Date: 15 July 2025
  • Competition Opens: Monday, 14 July 2025, 9:30am UK time
  • Competition Closes: Wednesday, 3 September 2025, 11:00am UK time (This is the strict deadline for submission).
  • Applicants Notified: 9 October 2025
  • Project Start From: 1 December 2025
  • Project Must Start By: 1 January 2026
  • Project End By: 31 August 2026 (for projects lasting up to nine months).
Application Procedure and Steps
  1. Read Guidance: Before starting, thoroughly read the guidance on applying for a competition on the Innovation Funding Service.
  2. Submit to Correct Competition: It's your responsibility to ensure your application is submitted to the correct competition; applications cannot be transferred and will not be assessed if out of scope.
  3. Accuracy and Completeness: Before submission, ensure all information is correct, your proposal meets eligibility and scope criteria, grant request does not exceed limits, and all sections are marked as complete.
  4. Submission Format: Applications are submitted online via the Innovation Funding Service. You can start a new application or sign in to continue an existing one.
  5. Reopening and Resubmission: You can reopen and resubmit your application after initial submission, up until the competition deadline.
Required Documentation and Materials The application is split into three main sections:
  1. Project Details (Not Scored):
    • Project title, start date, duration.
    • Research category (select 'Feasibility study').
    • Project summary (up to 400 words) and public description (up to 400 words, publishable).
    • Scope description (up to 400 words), explaining how your project fits the competition.
    • Applicant location (organisation and subcontractors' names and registered addresses, up to 100 words).
    • Animal testing declaration (yes/no).
    • Permits and licenses declaration (yes/no/in process/not applicable).
    • International collaboration details (up to 400 words).
    • Trusted Research and Innovation (TR&I) Principles relation (up to 400 words).
    • Your business description (current positioning, capacity, strategy, ambition, leadership, history, scale, revenue, owners/investors; up to 500 words).
  2. Application Questions (Scored): Detailed answers to questions 7-14, as outlined in the 'Evaluation Criteria' section. Specific word limits apply (600 words per question).
    • Appendices: For Question 8 ('Your product or process') and Question 9 ('The target market'), you can submit one PDF appendix (max 10MB, up to two A4 pages for Q8, three A4 pages for Q9). For Question 10 ('Your commercialization plan') and Question 13 ('The impact of this feasibility study'), you can also submit one PDF appendix (max 10MB, up to two A4 pages).
    • No URLs: Do not include any website addresses or links (URLs) in your answers; this will make your application ineligible.
  3. Finances: Complete your project costs, organization details, and funding details.
Types of Support Offered
  • Monetary: Grant funding as described in the 'Financial Structure' section.
  • Guidance: Innovate UK, DBT, and APC provide guidance during the application process and project delivery.
  • Post-Award Support: Successful applicants will go through a project setup process. Innovate UK provides project monitoring, financial claim approvals, and fund issuance.
  • Unsuccessful Applicants: Feedback from assessors will be available. Eligible non-funded businesses can also benefit from fully funded and bespoke support from the Innovate UK Business Growth service.
Project Implementation and Reporting
  • Project Duration: Up to nine months.
  • Deliverables: Your project must deliver a detailed closeout report and include a presentation at a closeout meeting with the APC to review the business case, its outcomes, and next steps before final payment.
  • Progress Tracking: Innovate UK provides formal assurance that projects are meeting their commitments through project monitoring.
Application Assistance Availability
  • Contact: You can contact Innovate UK by email at [email protected] or call 0300 321 4357. Phone lines are open 9am-12pm and 2pm-5pm UK time, Monday to Friday (excluding bank holidays).
  • Accessibility Support: Contact Innovate UK at least 15 working days before the closing date for reasonable adjustments for disabilities or long-term conditions. Assistance may be limited closer to the deadline.
  • APC Support: APC can provide general guidance, help with bid structuring, explain common pitfalls, and answer scope questions via [email protected].

Evaluation Criteria

Applications for the DRIVE35 Scale-up: Feasibility Studies grant will be evaluated by independent assessors based on the quality of your responses to specific application questions. While some initial questions are not scored, they provide crucial context for the assessors' overall evaluation. Scored Application Questions (Core Evaluation Areas) The assessors will carefully consider and score your answers to the following questions (questions 7 to 14):
  • Question 7: This feasibility study
    • What to include: Describe your proposed feasibility study, its objectives, how you'll deliver it (plan, milestones, timing), the team and subcontractors' experience and responsibilities, and how outcomes contribute to your strategy and commercialization.
    • Evaluation Focus: Clarity and robustness of the feasibility study plan, project management capabilities, relevance of the team's expertise, and strategic alignment of the study's outcomes.
  • Question 8: Your product or process
    • What to include: Describe the product/process you're taking to market, how it solves a customer problem, and how it supports the transition to Zero Emission Vehicle (ZEV) manufacturing. Include innovation description, value proposition (quantified), unit economics, environmental benefits, and technology/manufacturing readiness levels (automotive TRL/MRL) with justification.
    • Evaluation Focus: Technical innovation, market relevance, problem-solving capability, economic viability, contribution to ZEV transition, and maturity for capital investment.
  • Question 9: The target market
    • What to include: Describe the market for your product/process, including supply chain fit, market size (10 years), customer segments, market traction (sales opportunities, MOUs, JDAs), and competitive analysis. Explain why now is the right time for this study.
    • Evaluation Focus: Market understanding, competitive advantage, market entry strategy, commercial readiness, and market timing justification. Appendices (letters of intent, market analysis) are allowed.
  • Question 10: Your commercialization plan
    • What to include: Outline your broader commercialization roadmap, proposed business model, timeline for market entry post-feasibility study, impact on your organization (growth, investment required in UK/overseas), and how the study mitigates risks to this plan.
    • Evaluation Focus: Practicality and robustness of the commercialization plan, understanding of risks, and potential for organizational growth and UK investment.
  • Question 11: Your commercialization team
    • What to include: Describe the leadership team responsible for commercial success, their roles, responsibilities, experience, and capabilities. Identify any capability gaps and how the study will help address them.
    • Evaluation Focus: Strength and experience of the commercialization team, particularly relevant to your project's scale (pilot vs. larger), and strategy for filling any gaps.
  • Question 12: Your finance plan
    • What to include: Describe how you will finance the manufacturing facility resulting from the feasibility study, including expected financial package (corporate investment, debt, equity, government support), possible funding sources, and how ready you are to secure this finance. Explain what the study will clarify to achieve investment.
    • Evaluation Focus: Realism and robustness of the finance plan, understanding of funding requirements, and the study's role in securing future investment.
  • Question 13: The impact of this feasibility study
    • What to include: Summarize the project's impacts and benefits to your business, UK customers/suppliers, and the wider UK industry. Quantify environmental benefits, UK investment unlocked, growth in commercial revenue and jobs, economic benefits, and impact on UK competitiveness. Explain how public funding enables these outcomes.
    • Evaluation Focus: Demonstrated potential for significant positive impact (economic, environmental, job creation) within the UK, and justification for public funding's necessity.
  • Question 14: Project costs
    • What to include: Detail the total eligible project costs, the grant amount requested, justification for subcontractor costs, how you will finance your unfunded contribution, and what your project would look like without public funding.
    • Evaluation Focus: Cost-effectiveness, justification of requested grant amount, understanding of financial obligations, and necessity of public funding for the project's scope.
Overall Assessment and Portfolio Approach
  • Cohesiveness: Assessors will evaluate the overall cohesiveness and strength of your application across all questions.
  • Quality Thresholds: Your application's total score must be above a certain funding threshold.
  • Portfolio Approach: Innovate UK aims to fund a variety of projects across different technologies, vehicle applications, markets, technological maturities, and organizational sizes. Even if your project scores highly, it may not be funded if it does not fit the overall portfolio requirements for automotive transformation.
Cross-Cutting Themes (Implicit in Scoring)
  • UK Industrial Strategy Alignment: Projects must contribute to the UK's strategic aims and priorities, including the Industrial Strategy and Automotive Council's Roadmaps. This is a critical un-scored but mandatory criterion for scope, and likely influences scoring on impact and market questions.
  • Zero Emission Vehicle Transition: A core theme across all questions, demonstrating how the product/process supports this transition and enables environmental benefits is crucial.
  • High Value Jobs and Economic Benefit: Strong emphasis on contributing to UK growth, job creation, and economic benefit.

Compliance & Special Requirements

The DRIVE35 Scale-up: Feasibility Studies grant has several critical compliance and special requirements that applicants must adhere to: Regulatory and Legal Compliance
  • UK Sanctions: The competition will not fund or provide financial benefit to any individual or entities directly or indirectly involved with you if it would expose Innovate UK or any beneficiary to UK Sanctions. This includes procurement, commercial, business development, or supply chain activity with sanctioned entities or countries.
  • Subsidy Control Act 2022: All funding awarded must be compliant with the Research, Development and Innovation Streamlined Subsidy Scheme and the Subsidy Control Act 2022. Applicants are advised to seek independent legal advice if unsure about their obligations.
  • State Aid: EU State aid rules apply only in limited circumstances (as per the Windsor Framework). Applicants must declare if State Aid or Subsidy applies to their organization in the application.
  • Permits and Authorizations: You must confirm that you will have all correct permits and licenses in place by your project start date. Innovate UK cannot fund projects lacking these.
Ethical and Quality Standards
  • Animal Welfare: If your project involves animals or animal testing, it must comply with UKRI guidance on the use of animals in research and innovation. Additional information on welfare and ethical considerations will be required for funded projects.
  • Trusted Research and Innovation (TR&I) Principles: Applicants must explain how their proposed work relates to UKRI's TR&I Principles, including details on dual-use applications, relevance to the UK National Security and Investment (NSI) Act, export control licenses, and items on the UK Strategic Export Control List. If not applicable, this must be confirmed.
Data Protection and Sharing
  • Joint Operation: This competition is jointly operated by Innovate UK, Advanced Propulsion Centre UK Limited (APC), and the Department for Business and Trade (DBT). Relevant information submitted during the application process (including personal details, scoring, feedback, and grant management information) can be shared between these agencies.
  • Third-Party Sharing: Innovate UK may also share relevant information with its national and regional UK third parties and partners.
  • Compliance: Innovate UK complies with UK GDPR and the Data Protection Act 2018. Applicants should review the privacy policies of Innovate UK, APC, and DBT.
Intellectual Property
  • Ownership: Not explicitly detailed in the provided documents, but generally, intellectual property generated remains with the grant recipient, subject to standard Innovate UK terms and conditions for grant funding.
Unique Aspects and Strategic Opportunities
  • Feasibility Study Focus: The core of this grant is to support feasibility studies defined as 'the evaluation and analysis of the potential of a project, which aims at supporting the process of decision-making. This is done by objectively and rationally uncovering its strengths and weaknesses, opportunities and threats, as well as identifying the resources required to carry it through and ultimately its prospects for success.'
  • Investment Ready Business Case: A key deliverable is an investment-ready business case that advances your readiness for manufacturing at targeted production maturity and volume.
  • Portfolio Approach: Innovate UK will apply a portfolio approach to selecting projects, aiming for a variety across technologies, vehicle applications, markets, maturities, and organizational sizes. This means a high-scoring project might not be funded if it doesn't align with the desired portfolio balance.
  • Strategic Alignment: Projects must explicitly contribute to the growth, transition, and resilience of the UK's automotive supply chain, aligning with the UK's strategic aims and priorities (e.g., Industrial Strategy, Automotive Council's Roadmaps).
  • UK Economic Benefit: Strong emphasis on creating and safeguarding high-value jobs and delivering lasting economic benefit to the UK, including positive impacts on the UK supply of critical materials and competitiveness.
  • Innovation Context: The grant fits within the broader DRIVE35 programme, led by the Department for Business and Trade, focused on transforming the UK's automotive industry through R&D and commercial scale-up of zero-emission vehicle technologies.
Risk Management Expectations
  • Applicants are expected to identify and articulate risks associated with their commercialization plan and how the feasibility study will enable understanding and mitigation of these risks (Question 10).
  • The overall competitive process means funding is not guaranteed, even for highly scored projects, due to funding limits and the portfolio approach.

Grant Details

zero emission vehicles zev automotive manufacturing feasibility study scale-up electrification advanced propulsion uk manufacturing transportation energy sustainability innovation industry business case pilot production demonstration production industrial production electric vehicles batteries fuel cells power electronics lightweighting hydrogen storage supply chain circularity digital transformation decarbonisation lean manufacturing ukri innovate uk department for business and trade advanced propulsion centre uk grant development early market growth sme enterprise
DRIVE35 scale-up: feasibility studies – UKRI
DRIVE35 Scale-up: Feasibility Studies (Competition 2247)
DRIVE35 (Driving Research and Investment in Vehicle Electrification)
ENTERPRISE SME STARTUP
GB
TRANSPORTATION MANUFACTURING ENERGY
DEVELOPMENT EARLY_MARKET GROWTH
0-10 11-50 51-250 251-500 500+
SDG7 SDG8 SDG9 SDG12 SDG13
FUNDING RESEARCH_DEVELOPMENT CAPACITY_BUILDING INNOVATION_COMMERCIALIZATION
None
5000000.00
150000.00
750000.00
GBP
60.00
Sept. 3, 2025, 10 a.m.
None