Description

DRIVE35 Innovation Fund: Collaborate 2 is an Innovate UK-delivered grant competition co-funded by the Department for Business and Trade (DBT) and the Advanced Propulsion Centre UK (APC). It is part of the broader DRIVE35 Innovation Fund initiative, which aims to accelerate the UK’s transition to zero emission vehicles (ZEVs) and build net zero automotive industry capability through late-stage collaborative research and development. UK-registered businesses can apply for funding to design, develop and commercially advance technologies and manufacturing capabilities that strengthen the UK automotive supply chain.

Funding amount

• Total funding available: up to £33 million in grant funding for Collaborate 2 projects.
• Per project:
  • Grant funding requests must be between £2,500,000 and £25,000,000;
  • Projects must be at least 50% match funded, meaning total eligible project costs must be at least twice the grant amount requested;
  • A minimum of 70% of total project costs must be incurred by commercial organisations;
• Funding is in the form of a grant; funding rates vary depending on research category and organisation size (industrial research vs experimental development), consistent with standard Innovate UK rules.

Submission deadlines

• Competition opens: 5 January 2026 at 9:30 am UK time.
• Competition closes: 18 March 2026 at 11:00 am UK time.
• Project start date: Projects must start by 1 October 2026.

Submission conditions

Applicants must:

• submit via the Innovation Funding Service by the deadline;
• include robust evidence of match funding (≥50% of total project cost);
• ensure all project work is carried out in the UK and results are to be exploited from the UK;
• ensure projects comply with Innovate UK eligibility, cost and subsidy control guidance;
• design projects consistent with TRL/MRL targets and commercialisation outcomes;

Eligible types of businesses / organisations

To lead a collaborative project:

• Lead organisation: must be a UK-registered business of any size;
• The consortium must include:
  • at least one UK registered micro, small or medium-sized enterprise (SME) claiming grant funding;
  • a vehicle manufacturer or Tier 1 supplier to an OEM is recommended/required by some guidance (industry context);
• Additional partners can include:
  • UK businesses of any size;
  • academic institutions (invited into the application);
  • charities or not-for-profits;
  • public sector organisations;
  • research and technology organisations (RTOs).
• Academic institutions cannot lead alone; they must collaborate with business partners.