DRIVE35 automotive grant funding opportunities open for applications

06 January 2026

Applications are now open for two funding competitions as part of the government’s £4 billion DRIVE35 programme, delivered in partnership with the Advanced Propulsion Centre UK (APC) and Innovate UK.  

Collaborate and Demonstrate opened for applications on 5 January 2026.  

They come under DRIVE35’s Innovation pillar, focusing on delivering late-stage R&D and SME growth projects by providing targeted funding and support at various stages of the innovation journey. 

The scope also includes automotive software (i.e., software-defined vehicles), electrical and electronic architectures, and manufacturing competitiveness. 

Collaborate supports late-stage R&D projects that are ready to bring zero-emission innovation to market. It offers organisations the opportunity to lead or join a consortium delivering impactful solutions in vehicle technology, with match funding of between £2.5 million and £25 million available for successful applicants. The applications for Collaborate are open until 18 March 2026 at 11:00 GMT. 

Demonstrate offers a unique opportunity to rapidly develop a product or process demonstrator in under 12 months, enabling businesses to capitalise on market opportunities or improve cost competitiveness, with grant funding of between £500,000 and £1.5 million available, with a minimum match funding requirement of 50%. The applications for Demonstrate are open until 11 March 2026 at 11:00 GMT 

Both these opportunities, Demonstrate and Collaborate, are open for applications twice a year. 

Led by the Department for Business and Trade, in partnership with the APC and Innovate UK, DRIVE35 commits a total funding amount of £4 billion to the UK automotive sector until 2035, making it a key initiative in advancing the UK’s capability in next-generation, zero-emission technology. 

Find out more about DRIVE35 and other funding opportunities now. 

All grant funding is subject to HMG approval.