Introducing DRIVE35: £2.5 bn programme

Speaker A: Hello and welcome to the Road to Net Zero, a podcast from the Advanced Propulsion Centre. My name is Clem Silverman and we're back with a new series of insights and case studies to bring you so you can be informed of the latest in zero emission vehicle technology here in the uk. Some things to look forward to in the next couple of weeks include a deep dive on the APCs demand report, the dark arts of battery demand forecasting and we'll take you on a journey to one of our projects working on recycling of life batteries too. Of course later this year we will report from Senex Expo as the industry gathers once again to show off the latest developments. But first, uh, some very exciting news has been announced. Thanks to the UK Government's Industrial Strategy and Advanced Manufacturing sector plan, we can finally lift the COVID on the Drive 35 program from the Department for Business and Trade. That's a 2 billion pound program to support the automotive industry in the next five years and at least a further 500 million to 2035. For R&D. Under Drive 35 there are three main funding priorities. They are supporting innovation, accelerating scale up and enabling transformation. Under each there are specialized grants facilitated by the APC and the competitions will open at regular intervals throughout the year. You want to know more, we've got you covered. Here's Rick Adams, Innovation Delivery Director.

Speaker B: Hi, I'm Rick Adams from the Advanced Propulsion Centre and I'd like to tell you about Drive 35. Drive 35 is an exciting new funding program from the Department of Business and trade which deploys 2 and a half billion pounds of funding for UK Automotive uh over the next 10 years. The advanced Propulsion Centre are uh, delivering this program with with a targeted set of grants for the UK automotive industry from micro businesses, startups and spin outs through the full depth of the supply chain and into niche and volume manufacturers. Building on the last decade of innovation and support for UK businesses doing zero emission vehicle technology, we expand on this by supporting not just those technology innovations, but also manufacturing competitiveness, productivity, software development and electronic and electrical architectures. In addition to this we're also able to support scaling businesses with deploying funding for their pilot or demo lines as well as capital funding for large scale volume manufacturers. If you think you've got a project that sounds like it fits in one of those areas, get in touch and I'm sure we can find a way to support you.

Speaker A: The Drive 35 grants that are uh, opening for applications as of July 2025 are collaborate, uh, demonstrate and scale up feasibility studies as well as expressions of interest for the new and improved Automotive Transformation Fund. Here's Alex Wood to explain more about Collaborate and Demonstrate.

Speaker C: Hello, my name is Alex Wood and I'm head of Product for Innovation. I'm here to tell you about how we're supporting innovation with two available grants facilitated by the apc. Firstly, Collaborate grants fund projects where companies and academic institutions form a consortium to take a product or process to commercial readiness. Successful applicants can receive up to 25 million pounds to support the design, development and manufacturing and delivery of strategic zero emission vehicle technologies. For companies that are earlier in their product or process development or need a short sharp sprint to get to where they want to be, you can apply for a Demonstrate grant. This enables companies to build a product or process demonstrator in under 12 months and have something tangible to take to their end customers. Demonstrate grant funding is available up to 1.5 million pounds match funded for single entities or companies that want to form a group. Both these opportunities, Collaborate and Demonstrate are open for applications twice a year for the first time. The scope also includes automotive software and electrical and electronic architectures and manufacturing competitors. If you have any questions, talk to us now to understand how your project might fit. Thank you.

Speaker A: Thanks Alex. And what about the scale up feasibility studies?

Speaker D: Hi, I'm Josh Dent, I'm head of product for Start Scale and Investment here at the Advanced Propulsion Centre and I'm here today to talk to you about our new feasibility study competition. So through this competition you could attract investment to help you build your investment case, your business case and and explore your options for manufacturing in the United Kingdom. Our aim is to accelerate your scale up investments and enable businesses to move into commercial production at uh, scale. We're looking to support businesses from startup SMEs and scale ups to large corporates that are developing their case for zero emission vehicle manufacturing in the United Kingdom. Companies can apply for funding to deliver a feasibility study to assess the planning investment case and um, business case for manufacturing projects. And this can be across pilot scale, demonstration scale or full industrial scale facilities. This includes the whole suite of zero emission vehicle technologies and for the first time it also includes the final assembly of zero emission vehicles themselves. So if you're a scaling SME building your investment case for your first manufacturing facility all the way through to a larger or even global corporate exploring the UK as a location for manufacturing at scale. We want to hear from you. Thank you.

Speaker A: Does that sound like something you or your organization is interested in? Here's a mini guide on how to apply for these Competitions.

Speaker E: Hello, I'm Zoe hall and I head up the delivery team at the APC. We're extremely excited to launch the first Drive 35 grants today. Would you like to apply? Here's how to get ready. Firstly, come and talk to us. Our business development team is here to guide and support you. Secondly, apply via the Innovate UK Innovation Funding service. You'll find a link on the APC website and both the APC and Innovate UK can answer any questions that you have. So here are my top tips. First of all, be deadline alert. There are no opportunities for any extensions, so please plan ahead, especially as many of these are opening over the summer period. You should appoint a lead to pull the application together and this will be even more critical if you have a multi partner project. Secondly, know your grants requirements differ by competition, so apply to the best fit for your project. And if making multiple applications, do consider your available resources, particularly if you're successful and need to deliver them. Thirdly, check your eligibility. Avoid missteps at the first hurdle. Speak to us if you're unsure, for example, about grant funding percentages and how to balance the grants across the whole project. Prepare for multiple stages. Again, know your competition. There will always be a written application, but several of our products require interviews and presentations the APC can support to make sure that you are very well prepped. Finally, scope updates. There are changes to the new Drive 35 programme. Do talk to us to make sure that you stay on track. The bottom line is, don't wait. Contact the APC now. We're here to help you refine your project pitch and align with the best funding stream your project deserves. Uh, the best shot. Thank you.

Speaker A: Thanks, Zoe. So we are taking inquiries now to help companies prepare a project pitch and align it with the most suitable funding stream available through the Drive 35 initiative. As Zoe says, talk to us. In the meantime, stay tuned to the Road to Net Zero for more information and go to our website to find out more about Drive35. That's apcuk.co.uk funding. Thanks once again for listening.