01278 228004

Chamber News

You are here: 

Up to £150 million available for businesses scaling up zero emission vehicle manufacturing

Sunday 26th July, 2026

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.

Latest news

The latest edition of Sedgemoor InBusiness is out now, here's what's inside
July 27, 2026

Edition 9 of the Chamber's magazine rounds up Somerset Business Expo, a major update from Agratas, member news and practical business advice The ninth edition of Sedgemoor InBusiness, the official magazine of Sedgemoor Chamber of Commerce, has just been published, bringing together the latest news, member stories and practical guidance for businesses across the region.…

Read More
Free places available on Frome course helping people turn business ideas into reality
July 27, 2026

Enterprising Together, a hands-on course from Edventure, opens for enrolment this September, with funded places worth £2,500 available to Somerset residents at no cost Anyone in Somerset sitting on a business idea they've never quite found the time or confidence to start now has a practical route to get going, with enrolment open for the…

Read More
Fully-funded support for AI-driven creative tech startups, applications now open
July 27, 2026

CoSTAR Emerge-AI offers early-stage businesses a three-month package of expert support, cloud credits and £5,000 in funding, with no equity taken A new fully-funded programme is open for applications from early-stage tech startups and SMEs using AI within the creative industries, offering a rare combination of funding, expert guidance and infrastructure access at no cost…

Read More
Porter Dodson Achieves B Corp Certification
July 27, 2026

Porter Dodson is delighted to confirm that, following a rigorous independent assessment, it has achieved B Corp Certification, joining a growing global community of businesses committed to balancing people, planet and profit. This is a significant milestone for Porter Dodson, reflecting the firm's strong commitment to its people and culture, and its wider commitment to…

Read More