APC26: Industrialising net zero automotive technology

UK registered businesses can apply for a share of up to £40m for late stage R&D projects to accelerate the UK transition to zero emission vehicles and a net zero automotive future.

Opportunity Details

When

Registration Opens

14/01/2025

Registration Closes

14/03/2025

Award

Your project’s total eligible grant funding request must be between £2.5 million and £20 million. Your project must be a minimum of 50% match funded.

Organisation

Advanced Propulsion Centre (APC)

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Innovate UK, part of UK Research and Innovation, will work with the Department of Business and Trade (DBT) through the Advanced Propulsion Centre (APC), the automotive industry and academia. We want to accelerate the industrialisation of strategically important vehicle technologies, digital optimisation and manufacturing processes. These processes support the UK’s transition to a zero emissions automotive industry.

APC’s in-depth knowledge and expertise in new propulsion technologies, will help you with building and advising your project and supporting you to start quickly. Your supported project will deliver increased value, safeguard skilled jobs and keep the UK automotive industry competitive.

We are working to drive innovation and encourage collaboration to build the foundations for a successful and sustainable UK automotive value and supply chain.

The aim of this competition is to support collaborative R&D projects that design, develop and manufacture technology. These projects will support the UK’s transition to zero-emission vehicles and a pathway to a net zero automotive industry.

In this competition, Innovate UK, part of UK Research and Innovation, will work with the Advanced Propulsion Centre UK (APC) to invest up to £40 million, of UK Government grant funding in innovation projects.

Your proposal must be a collaborative, pre-production research and development (R&D) project that:

  • supports securing long term R&D investment
  • creates or safeguards high value jobs when undertaking the project and as a result of any post project R&D and manufacturing activities
  • develops the UK’s automotive supply chain

Your project will ensure the UK meets the future demand of vehicle makers and users. The outcomes will strengthen the UK’s global impact and, anchor added value across the whole supply chain.

  • To lead a project your organisation must:

    • be a UK registered business of any size
    • collaborate with other UK registered organisations
    • involve at least one grant claiming micro, small or medium sized enterprise (SME)
    • be a grant claiming recipient
    • include in your consortium a vehicle manufacturer or Tier 1 supplier who supplies parts directly to an original equipment manufacturer (OEM)

    To collaborate with the lead, your organisation must be one of the following UK registered:

    • business of any size
    • academic institution
    • charity
    • not for profit
    • public sector organisation
    • research and technology organisation (RTO)

    Non-UK registered businesses and research organisations are only eligible to apply for funding if:

    • an active UK registered business is set up through which the funded project work will be carried out
    • evidence is provided of an intention to expand the R&D activity in the UK during and after the project

    A company registration number starting with a FC or BR is not considered as a UK registered business and not eligible to apply for funding.

    Your project can include non-UK partners, including partners based in the EU, who bring their own funding. Non-UK partners are permitted to carry out project work from within their home countries and exploit results overseas. Their costs will count towards the total eligible project costs.

    There is no limit on the number of applications an organisation can be involved in.

  • Your project must:

    • have a total eligible grant funding request of between £2.5million and £20 million
    • be a minimum of 50% match funding, for example, if you are asking for £2.5 million in grant your total eligible project costs need to be a minimum of £5 million
    • have a minimum of 70% of your project’s total eligible costs being incurred by commercial organisations
    • last between 18 and 36 months
    • carry out all of its project work in the UK
    • intend to exploit the results from or in the UK
    • start by 1 August 2025
    • end on 31 July 2028
  • The aim of this competition is to support collaborative R&D projects that design, develop and manufacture technology. These projects will support the UK’s transition to zero-emission vehicles and a pathway to a net zero automotive industry.

    Your project must:

    • contribute to the UK’s strategic aims and direction of travel towards zero- emission transport vision, such as the Automotive Council’s Roadmaps
    • deliver on-vehicle technologies or associated manufacturing processes which support the transition to a net zero automotive industry
    • support growth, transition and security of the UK’s automotive supply chain, increasing capability, whilst improving productivity, efficiency and competitiveness
    • target post project commercialisation
  • Your project must advance technologies in one or more of the following areas:

    • energy storage batteries, their components, management and integration systems
    • fuel cells, fuel cell systems and associated balance of plant
    • electric machines and associated driveline
    • power electronics
    • internal combustion engine (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 engine (ICE) for off-road applications, we will fund project proposals that support a transition to zero emissions, utilising non-fossil fuels
    • lightweighting materials, methods and processes
    • hydrogen storage and management systems

     Your project can:

    • be focussed on design for circular economy, including the disassembly, recovery, and reuse of materials used in the project technologies
    • be focussed on physical, digital, or a combination toward the development of zero emission vehicle innovation, manufacture of vehicle systems and sub-systems, data analytics, redesign, test and validation and verification
  • We are not funding projects that are:

    • only focussed on the development of clean fuels
    • not aligned with the UK net zero research innovations framework
    • requesting more than 50% grant for total project costs
    • developing either e-Scooters or e-Bikes
  • A recorded briefing event is available (recorded 10 Dec 2024): watch the recording

    Briefing slides are available to download from Supporting Information.

    If you want help to find a project partner, contact Innovate UK Business Connect’s Transport team or our Manufacturing team.

    Extra help

    Note that the APC’s role is to provide indicative guidance rather than formal advice. To contact APC email info@apcuk.co.uk.

    If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.

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