DRIVE35 Scale-up: Feasibility Studies 2

To work alone your organisation must be a UK registered business of any size.

There are no restrictions on the number of applications on which an eligible organisation can lead. Successful applicants will be asked to confirm they have the capacity to run multiple projects simultaneously. The maximum subsidy amount which can be awarded per individual enterprise under this route is £3 million.

Subcontractors are allowed: they can be from anywhere in the UK and you must select them through your usual procurement process.

Your project must:

• have a grant funding request of between £150,000 and £750,000
• last up to nine months
• start by 1 May 2026
• end by 31 January 2027

Your project must have a maximum of 50% grant funding for a large organisation, or 60% for an SME, for example:

• if you are applying as a large organisation and asking for £300,000 in grant, your total eligible project costs must be a minimum of £600,000
• if you are applying as an SME and asking for £300,000 in grant, your total eligible project costs must be a minimum of £500,000

Any funded organisation needs to carry out their project work in the UK and must intend to exploit the project results from or in the UK.

The aim of this competition is to support detailed feasibility studies into the deployment of UK based manufacturing facilities for zero emission vehicle technologies, such as:

• pilot scale manufacturing
• demonstration scale manufacturing
• industrial scale manufacturing

Your proposal is expected to enable an investment ready business case, advancing your readiness for manufacturing at your targeted production maturity and volume.

If your project is not in scope, it will not be sent for assessment. We will tell you the reason why.

Your project must:

Support growth, transition and resilience of the UK’s automotive supply chain by increasing capability whilst improving productivity, efficiency and competitiveness.

Contribute to the UK’s strategic aims and priorities, for example, the Industrial Strategy, and Automotive Council’s Roadmaps and Strategic Technology areas.

Undertake a feasibility study that develops a detailed plan, business case and investment case for creation or conversion of manufacturing facilities for eligible on-vehicle technologies, including zero emission vehicle assembly and the associated supply chain.

Support the transition to zero emission vehicles and have the potential to create and safeguard high value jobs and create a lasting economic benefit to the UK.

Deliver a detailed closeout report and present at a closeout meeting with the APC. This is to review the business case, its outcomes and next steps, prior to closure and payment of the final claim.

Your project can enable you to:

Develop a plan for the build or conversion of manufacturing facilities in the UK, including:

• your technical approach
• your objectives
• a detailed timing schedule

Create a flow sheet or layout of your manufacturing process or manufacturing facility.

Continue to develop robust commercialisation plans with a clear articulation on how the eligible technology will be commercialised or delivered to the automotive market at pace, from the UK and as a result of the project. This does not exclude spill over use in other sectors.

Produce detailed costing and financial models examining the costs of developing and operating your manufacturing facility and the incomes that it could enable.

Produce a business case for future investment which enables a decision:

• to invest in the project in the UK

or

• that clearly shows the potential barriers or challenges to doing so and the additional steps or measures to overcome these barriers

Develop the insight, plans and details required to show how you will secure investment in your manufacturing plan for the zero emission vehicle supply chain in the UK.

This competition aims to support feasibility studies, enabling investment into manufacturing of strategically important technologies for on board vehicle applications in one or more of the following areas:

• electrical energy storage: development of batteries, supercapacitors, their components, management, and integrated systems
• electric machines and associated driveline
• power electronics including Vehicle to Everything (V2X)
• internal combustion engine (ICE) for off road applications, we will fund project proposals that support a transition to zero emissions, utilising non fossil fuels
• lightweight vehicle and powertrain structures
• fuel cell systems and associated balance of plant
• hydrogen storage and management systems
• zero emission vehicle assembly

Within the technology scope outlined above, your project can include:

• upstream supply chain for the technologies, including, raw materials, component manufacturing and subassembly manufacturing
• circularity and design for disassembly: projects delivering manufacturing systems which enable the disassembly, remanufacturing, recovery and reuse of materials
• the deployment of technologies, to enable productivity and cost competitiveness across the relevant aspects of applicable manufacturing operations in any of the following areas: digital transformation, manufacturing process decarbonisation and lean manufacturing

Digital transformation can include integration of digital tools within the manufacturing process, for example, the use of AI, digital twins, and Internet of Things (IoT).

Manufacturing process decarbonisation can include processes that use renewable energy sources or innovations enabling reduced energy consumption within manufacturing processes, including capture and reuse.

Lean manufacturing can include implementation of innovative lean principles to improve efficient use of materials used in processes, reduce their environmental impact and improve efficiency, including the use of advanced automation techniques.

You must develop business cases that take new technologies towards scale up, market entry and industrialisation. You must outline how your project will enable you to enter the following vehicle supply chain or markets:

• on highway vehicles, for example, L-category, motorbike, car, bus and truck applications
• off highway vehicles and non-road mobile machinery (NRMM), for example, construction, agriculture, mining and other off highway applications

Where your business case enables entry into other markets, you must be clear how the project prepares your business for entry into one of these vehicle markets.

We are not funding projects:

• that request a grant greater than 60% of total project costs for an SME or 50% for a large business
• that are focused on technology feasibility, technical research or technical product development
• that do not have a robust future plan to enter the zero emission vehicle supply chain
• where the product proposed for scale-up is not at a minimum of TRL5 or MRL4
• where R&D activity does not support automotive scale up
• that are not aligned with the UK Industrial Strategy 
• that are focused on the development or production of low carbon fuels
• that are not of future benefit to the automotive sector
• that are focused on technologies or processes which are too technologically immature to scale with increasing market demand
• that are focused on fossil fuelled internal combustion technology
• that are focused on the production of hydrogen
• that are focused on off vehicle charging infrastructure
• that are focused primarily on the development of digital or data technologies
• that are focused on small personal mobility applications such as e-scooters, e-bikes, or other low powered mobility devices

APC UK have released a pre-recorded briefing which is available to watch on YouTube.

A live Q&A for applicants will be held on Wednesday 19 November at 12:30pm: click here for the joining link (Zoom required).

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. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

You can also contact Innovate UK Business Connect’s Transport team or Manufacturing team for advice.