DRIVE35 is a £4bn, 10‑year programme providing accessible funding and expert support to accelerate zero‑emission vehicle innovation, scale‑up and transformation across the UK automotive sector.
In July 2025 the Department for Business and Trade (DBT) announced a new funding initiative, Driving Research and Investment in Vehicle Electrification (DRIVE35). Launched as part of the government’s Advanced Manufacturing Sector Plan and the UK’s Modern Industrial Strategy, DRIVE35 is designed to ensure innovation in the sector not only continues but accelerates.
Delivered in partnership with the Department for Business & Trade, Innovate UK and the APC, DRIVE35 is a 10-year, £4bn programme that will support zero-emission vehicle projects in the UK. Big and bold, DRIVE35 is the Government’s commitment to secure the UK’s place at the forefront of zero-emission vehicle development. Since it launched, the APC has facilitated funding for 101 zero-emission projects involving 201 partners.
DRIVE35 represents a fundamental shift in the funding landscape, with funding never being as clearly defined or accessible. Ultimately, DRIVE35 acts to maintain vehicle manufacturing in the UK, safeguard highly skilled jobs, and establish a sovereign-based, world-leading, globally competitive supply chain for zero-emission technologies, encouraging direct investment and generating significant export revenue.
The DRIVE35 programme has three funding objectives: supporting innovation; accelerating scale-up; and enabling transformation. These broad objectives allow considerable flexibility in the type, size, scale and focus of supported projects. In addition to funding, successful applicants will benefit from expert guidance from the APC and its partners.
Supporting innovation
This objective is focused on delivering SME growth and late-stage R&D projects. Under this funding pillar, there are 3 competitions, and the journey starts with Mobilise.
Mobilise is unique in the funding ecosystem in that it does not just focus on technology validation, its core purpose is to mentor organisations to ensure they are investment and market ready. Aimed at SMEs, start-ups, spinouts, and even more mature organisations with early-stage R&D projects, successful companies work with a carefully curated team of experts to help navigate obstacles to success, such as perceived market knowledge, business planning gaps, IP, certification, and more.
This vital programme builds the bridge between developing a business concept and getting it to a stage where companies can secure external finance. The money the APC provides is vital, but it is the support through coaching, consultancy, and building commercial relationships that can be transformative.
Once a concept is proven and an initial investment achieved, the next vital stage is to develop a demonstrator, a working prototype to support further validation and investment.
About:Energy, a successful Mobilise candidate, used the programme’s funding, mentoring and industry connections to pivot its business model, launch its Voltt battery data platform and become both investment and market‑ready.
The Demonstrate programme enables companies to accelerate their R&D programme by building a product or process demonstrator in under 12 months. Successful applicants also have the potential to showcase at Cenex Expo, which Triumph Motorcycles did in 2025, when they demonstrated a second-generation electric motorcycle software platform on the Demonstrate stand.
The next step on the journey is Collaborate, which provides match-funded grants to a consortium of partners formed across industry and academia to support the design, development, and delivery of strategic ZEV technologies. Funding is on a much larger scale, as the goal of the programme is to reach commercial readiness. Leyland Trucks was successful in securing Collaborate funding, which supported their scaling up of electric truck production.
Accelerating scale-up
Accelerating Scale-up is the next stage in the funding process, and its objective is to provide funding opportunities designed to support the rapid scale-up of pioneering technologies and achieve targeted production volumes at an accelerated pace.
The starting point is Feasibility Studies, which enables companies to validate their business and investment case for a manufacturing project at pilot, demonstration, or full industrial scale. It is a chance to test the market, assess the commercial feasibility of technologies and their growth potential before investing heavily in R&D. Announced in April 2026, FluoRok are benefiting from the latest round of funding, with a feasibility study for UK-based electrolyte salt manufacturing using FluoRok’s sustainable process.
The APC puts each business through an assessment process to help them understand and quantify the value of their proposition. The purpose is to get them to a point where they can secure a grant from the government to fund their work via the Scale-up Fund.
Once validated, companies can step up to the Scale-up Fund, enabling investment into building a manufacturing facility or developing a specific process development at pilot-scale or demonstration-scale. Altilium Metals will be developing demonstration-scale manufacturing of low-carbon recycled battery materials for the UK EV supply chain, as one of the newest companies awarded the funding.
Enabling transformation
The Automotive Transformation Fund (ATF) sits under this funding pillar and aims to develop a UK-based zero-emission vehicle value chain and support the transition to a BEV future. Global businesses can secure substantial capital funding from the ATF to support large-scale industrialisation for production and supply chain solutions. Large capital projects – like the £50m invested in the Ford plant – are judged on different criteria. – are judged on different criteria.
The competition is for businesses that plan to carry out capital-focused investment projects that support the UK automotive industry. The EOI application enables businesses to assess their eligibility to progress to the next stage of the funding process. Unlike other funding streams, the ATF can be applied for at any time, there is not set opening window.
Supporting a wide range of scopes
Whatever stage companies are at, there is a funding programme to suit. From start-up to concept, innovation to commercialisation, and onward to large-scale transformation, DRIVE35 offers more zero-emission funding opportunities than ever before. Whether you’re in tech, manufacturing, or a related industry, you may be eligible to receive support for your next automotive project.
DRIVE35 means the future for UK automotive manufacturing and innovation is bright, with funding secured.
To learn more about DRIVE35 or begin your application, visit https://www.apcuk.co.uk/funding/
For support or queries, speak to a member of the APC UK team: [email protected]
Author: Martin Welch, Senior Project Delivery Lead, Advanced Propulsion Centre UK (APC UK).
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