The DRIVE35 Scale Up Fund is open for applications from UK businesses developing manufacturing capability for batteries, electric vehicle components and other zero emission vehicle technologies
A significant new funding opportunity has opened for UK manufacturers involved in the zero emission vehicle supply chain, with up to £150 million available to help businesses move promising technologies from development into commercial-scale production. For Somerset businesses operating in or supplying into the automotive and advanced manufacturing sectors, this represents a substantial opportunity to secure capital funding towards building or converting manufacturing facilities.
What the fund is for
The DRIVE35 Scale Up Fund is part of the wider DRIVE35 programme (Driving Research and Investment in Vehicle Electrification), led by the Department for Business and Trade and delivered by Innovate UK, part of UK Research and Innovation, working alongside the Advanced Propulsion Centre UK. The programme’s aim is to transform the UK’s automotive industry by supporting the commercial scale-up of innovative zero emission vehicle technologies and unlocking further private investment across vehicles, batteries and their wider supply chain.
The Scale Up Fund specifically supports manufacturing facility and process development at pilot or demonstration scale, helping businesses validate their manufacturing capability and commercial viability ahead of full market entry.
Who and what it covers
The fund is open to UK registered businesses of any size, either applying alone or leading a consortium that can include academic institutions, charities, research and technology organisations or public sector bodies as collaborators. Eligible technology areas include batteries and energy storage, electric machines and driveline systems, power electronics, lightweighting materials, fuel cell systems, hydrogen storage, and zero emission vehicle assembly, along with the wider upstream supply chain for these technologies.
Grant funding requests must be between £2.5 million and £20 million, with total eligible project costs of at least £5 million. Businesses can claim up to 50% of eligible costs (30% for large organisations), and successful applicants will need to demonstrate they can unlock at least twice their grant value in private co-investment. Projects must run for at least 12 months, starting from 1 March 2027 and ending by 31 March 2030.
Why it matters
For businesses already investing in zero emission vehicle technology, or considering a move into this space, funding at this scale can be transformative, reducing the financial risk of building or converting manufacturing capability and helping bridge the gap between a proven concept and full commercial production. Innovate UK’s own guidance suggests a success rate of around 30% for applications, reflecting genuine but competitive demand, so early preparation is likely to matter.
Key dates
The competition opened on 17 June 2026 at 10:00am, with the current submission deadline set for 5 August 2026 at 11:00am.
Businesses interested in applying, or simply keeping track of the opportunity, can sign up for updates or start an application now.
