DRIVE35 scale up fund launches to enhance electric vehicle manufacturing

The Department for Business and Trade (DBT) has launched the DRIVE35 programme, where eligible UK companies can apply for a share of £150 million to scale up manufacturing facilities for zero-emission vehicle technology.

The programme has been launched in conjunction with the Advanced Propulsion Centre UK (APC) and Innovate UK, with the aim of supporting businesses that are in the early stages of developing zero-emission technology that could transform the UK’s automotive industry.

How does the DRIVE 35 scale-up fund work?

Eligible businesses can apply for a share of the grant being made available by the DBT. The aim is to support manufacturing development projects that are at the pilot or development stages.

The total eligible funding request a business makes must be between £2.5 million and £20 million. The total eligible costs must be over £5 million.

In addition to this, your project must last between 12 and 46 months and include a period where you can raise the matched funding from the grant before the project starts.

The project must start from June 1, 2026 and finish by 31 March 2030, with a large proportion of the project being completed in the UK. Work can be done overseas, but it needs to be justified.

The project must justify the funds you are asking for and why it may be eligible for the grant and you need to clarify if it can be matched by private investment.

What your project needs to do

Your project must support the growth, transition and resilience of the UK’s automotive supply chain.

It must increase the capabilities of the supply chain while ensuring it is productive, efficient and competitive. It also must play a role in contributing to the UK’s strategic aims and priorities like the Industrial Strategy and the Automatic Council’s Roadmaps.

Looking to apply for the grant?

The DRIVE35 scale-up fund opened on 17 September and while there isn’t a closing date for applications, the earlier you apply, the more time you have to meet the first submission date which is Wednesday 3 December 2025.

If you are looking to apply, our expert grant services team can help. We offer tailored advice and support to help you with your next venture.

We will help you break down your plans, discuss the finances involved and help put together your application.

Ready to start your next venture? Get in touch with our team.