Drive35 Innovation Fund Demonstrate 2 (2026): Apply for a Share of £33M to Fund Late-Stage Zero Emission Vehicle Demonstrations

If you build things that move people or freight — or you make the parts, software, batteries, or charging systems that make that movement cleaner — this competition is one to get on the calendar. Innovate UK is putting up a pool of up to £33 million for late-stage demonstration research and development projects aimed squarely at helping the UK automotive sector reach net zero. That means real-world testing, large-scale prototypes, and work that proves a technology can operate outside the lab and scale toward manufacture or deployment.

This is not seed money for an idea scribbled on a napkin. It’s for projects that are already mature enough to show they can work in messy, noisy, and expensive real environments: vehicle platforms, production lines, fleets, highways, or charging networks. If your team can turn an engineering risk into a commercial pathway, this fund could subsidise that bridge between pilot and market.

Read on for a practical guide — who should apply, what to include, how reviewers think, and a step-by-step timeline to help you submit a competitive application before the 11 March 2026 deadline.

At a Glance

What This Opportunity Offers

At its best, this competition provides more than cash: it buys you the runway to prove a vehicle technology or production approach at a scale that investors and OEMs can take seriously. The money is intended for late-stage demonstration, which typically means moving from lab prototypes or small pilots to field trials, production-intent prototypes, or integration tests with real users or supply chains.

Practically, projects funded under this call should be designed to answer the question: can this be produced, integrated, and operated at a scale and cost that makes commercial sense while meeting emissions and regulatory requirements? That could mean demonstrating battery pack production at higher throughput, showing how a new powertrain performs in a mixed fleet over thousands of kilometres, proving a vehicle-to-grid charging concept at a depot level, or validating new lightweight manufacturing processes on a production line.

Because the funding is sizeable but shared across winners, expect awards to support capital equipment, large-scale prototypes, testing and validation costs, staff and technician time, partner subcontracting, and essential infrastructure upgrades. Use of funds should directly move a technology past demonstration hurdles and toward commercial readiness, not simply extend basic research.

Beyond direct funding, successful projects often gain credibility. A completed demonstration funded by Innovate UK is a signal to customers, investors, and supply chain partners that your approach is serious and de-risked. That reputational lift is as valuable as the cash when you talk to OEMs, fleet operators, or investors.

Who Should Apply

This competition suits organisations that already have a working prototype or pilot and face the classic “valley of death” between small-scale demonstration and market entry. Typical leads are UK-registered businesses — from ambitious SMEs to large manufacturers — that can take technical and commercial responsibility for a project. If you’re a research lab, university, or charity, you can join as a partner, but the lead must be a business.

Good fits include:

• An SME that has built a demonstrator EV powertrain and needs a fleet trial to validate durability and energy consumption in real-world conditions.
• An automotive tier supplier ready to scale a battery pack assembly line and wanting to prove manufacturing yields and cycle time at near-production rates.
• A charging network operator piloting depot-scale high-power charging and vehicle-to-grid services with a medium-size bus or truck fleet.
• A consortium led by a business that includes a university for modelling and test design, a test house for certification work, and a local authority hosting a public fleet trial.

If your project is still at the breadboard stage (basic lab proof), this probably isn’t the right call. The fund expects projects that are designed to demonstrate performance, integration, and commercial viability in realistic settings. Aim for technologies at Technology Readiness Levels around the late prototype to pre-production end — think TRL 6 to 8 as a practical benchmark.

Eligibility and Partnership Rules (what you must know)

To lead a project you must be a UK-registered business of any size. The competition accepts single-organisation applications as well as collaborations. That means you can apply on your own if you have the in-house capability, or you can build a consortium to cover gaps in manufacturing, testing, regulatory expertise, or deployment partners.

Common partners in successful proposals include:

• Research organisations and universities (for test design, modelling, data analysis).
• OEMs or fleet operators (for access to vehicles, operational environments).
• Specialist test facilities or independent test houses.
• Local authorities or transport operators (for real-world deployment, permitting, access to routes or depots).

Be sure to check the official guidance for any sector-specific or project-size rules and for state aid considerations. If public sector bodies are part of your consortium, clarify their role and ensure funding flows and value for money are transparent.

Project Examples to Clarify Fit

Concrete examples help — here are projects that would generally fit the brief:

• A battery manufacturer demonstrating a modular pack design on a production-intent line, including cycle testing, thermal management validation, and integration into several vehicle platforms.
• A consortium demonstrating hydrogen fuel cell range extension for heavy goods vehicles across cross-country routes, including refuelling station integration and fleet operational studies.
• A software and hardware integration project proving vehicle energy management, charging scheduling, and depot power control at scale with several electric buses operating under real timetables.
• A lightweight body manufacturing process shown at near-production speed on a vehicle assembly jig, with quality control processes validated and a business case for scalability.

If your proposed demonstration includes regulatory testing, user trials, or public infrastructure changes, include partners who can clear those hurdles and document permissions early.

Insider Tips for a Winning Application

1. Start with a tight commercial narrative. Reviewers want to see a clear route to market, not a vague promise of research. Explain who will buy the outcome, how you will produce it at scale, and the milestones that prove commercial readiness.

2. Design your deliverables around demonstrable risks. List the key technical, operational, and supply-chain risks, then map clear, measurable deliverables that show how your project reduces each risk. “Reduce risk” means producing data, validated components, or operational evidence — not just more simulation.

3. Show credible partners with letters of commitment. A project that depends on fleet trials should include letters from fleet operators stating they will host the trial and what support they will provide. OEM interest, even informal, strengthens credibility.

4. Budget sensibly and justify every major cost. Large demonstration projects require capital equipment and test costs. Break costs down to show why requested funding is necessary and how it will be spent. If you can contribute in-kind support (facilities, staff time), quantify that value.

5. Build a realistic project plan with staged milestones. Fund reviewers prefer phased plans where early success gates later expenditure. For example, run an initial integration test before committing to mass prototype builds.

6. Prioritise data collection and independent validation. Demonstrations must produce evidence. Define the metrics you will collect, the test conditions, and where independent test houses or third-party validators will be used.

7. Think beyond the demonstration: sustainability and supply chain. Explain how your project reduces lifecycle emissions, addresses material sourcing, and can fit into UK manufacturing or service supply chains. Policy and regulatory alignment helps.

8. Use visuals in your bid where allowed. Diagrams of system integration, test rigs, or factory layouts help reviewers who skim documents.

9. Plan for dissemination and follow-on funding. Say how you will turn a successful demo into investor pitches, OEM agreements, or follow-on manufacturing grants.

Spend time making the application readable. Reviewers evaluate many proposals; clear, well-structured submissions get more favourable attention than dense, jargon-heavy ones.

Application Timeline (work backward from the March 11, 2026 deadline)

Successful applicants start months in advance. Here’s a practical schedule to keep you on track:

• 10–12 weeks before deadline: Confirm lead organisation, secure core partners, and hold a kickoff to allocate responsibilities. Agree on IP and commercial terms early.
• 8–10 weeks before: Draft the project narrative, commercial case, and budget. Obtain letters of support and outline data collection and validation plans.
• 6–8 weeks before: Circulate full draft to all partners for review. Request any technical appendices, manufacturing plans, or facility assurances needed for the application.
• 4–6 weeks before: Finalise the budget with your finance office. Make sure overheads, subcontractor quotes, and capital expenditure are correctly accounted for.
• 2–3 weeks before: Complete internal sign-offs. Have non-participant reviewers (someone outside the project) read the application for clarity and coherence.
• 48–72 hours before: Submit early to avoid last-minute portal issues. Complete any required declarations and check all attachments are uploaded.

Leave time for institutional approvals — many organisations require internal deadlines earlier than the funder’s.

Required Materials (what you should prepare)

Most Innovate UK competitions require a project narrative, financial details, and supporting documents. For a large, late-stage demonstration project prepare these materials early:

• A detailed project description (objectives, technical approach, work packages, Gantt chart).
• A commercial case explaining the route to market, customers, and value proposition.
• A fully itemised budget and justification (capital expenditure, personnel, subcontracting, test costs).
• Letters of support or commitment from partners and deployment hosts.
• Evidence of capability (company profile, previous demonstrators, manufacturing credentials).
• Risk register with mitigation measures.
• Data management and dissemination plan.
• Any mandatory declarations and state aid information required by the funder.

Write each document so a busy reviewer can rapidly extract the key facts: one-sentence summary, three key risks, and three measurable outcomes.

What Makes an Application Stand Out

Review panels look for clarity, realism, and impact. Standouts share several traits: a crisp articulation of the commercial opportunity, demonstrable access to the deployment environment (fleets, factories, test tracks), and evidence that the team can manage large-scale technical work and suppliers.

Quantified outcomes help. Instead of promising “improved range,” say “expected 10–12% range increase under WLTP-like conditions, demonstrated over 10,000 km of mixed urban/regional driving.” Where possible, include economic metrics: projected unit cost at scale, payback period for fleet operators, or manufacturing throughput improvements.

Strong applications also show regulatory and standards awareness: how will your demonstrator meet safety rules, homologation, or local permitting? Include plans to gather the certifications or third-party test reports you’ll need to commercialise.

Finally, panels reward realism. If some risks are high, explain phased mitigation and contingency plans. Demonstrating that you can respond to failure — and have budget and time for it — is more convincing than promising perfection.

Common Mistakes to Avoid

1. Overpromising scope. A common error is proposing an overly ambitious program that cannot be realistically completed within the timescale and budget. Break big ambitions into staged deliverables and explain what success looks like at each stage.

2. Weak partner commitments. Letters that say “we support” with no specifics are red flags. Get partners to state what they will provide (access to fleet, hours of technician time, test facility days), and when.

3. Poorly justified budgets. Vague lump sums for “equipment” or “testing” leave reviewers guessing. Provide quotes, unit costs, and clear justifications.

4. Ignoring deployment constraints. Demonstrations often fail because of overlooked regulatory, permitting, or logistical issues. Explain how you will secure permits, handle safety, and manage insurance.

5. Failing to measure. If you can’t point to the data that proves success, reviewers will worry. Identify metrics, measurement methods, and independent validators.

6. Late institutional approvals. Don’t assume your finance or legal team will be ready at the last minute. Secure internal sign-offs early.

Avoid these pitfalls and you’ll already be ahead of many applicants.

Frequently Asked Questions

Q: Can a university lead the project?
A: No. To lead a project your organisation must be a UK registered business of any size. Research organisations and universities may participate as partners but cannot be the lead applicant.

Q: Can international partners receive funding?
A: The lead must be a UK registered business; however, international partners can usually be included as subcontractors or collaborators. Check the official guidance for state aid and subcontracting rules.

Q: What scale of projects will be funded?
A: The fund totals up to £33 million and will be allocated across multiple projects. Expect awards to be sized for late-stage demos — amounts vary by project scope. Design your budget to reflect demonstrable, scaled activity rather than small pilots.

Q: Is prior funding or matching funding required?
A: Specific match or co-fund requirements will be in the official call documents. Demonstrations often combine grant funding with industry investment or in-kind contributions; show how the full project will be financed.

Q: How long does assessment take, and when will awards be announced?
A: Timelines vary. Allow several months from submission to award notification. Expect that feedback and next steps will be communicated by Innovate UK after assessment.

Q: Can a single company apply alone?
A: Yes. The competition accepts both single-organisation applications and collaborations. If you apply alone, make sure you can deliver all elements of the project or justify subcontracting.

Q: Where do I get more detailed eligibility rules?
A: The official Innovate UK opportunity page contains the full terms, state aid information, and application guidance. Use that as the authoritative source.

How to Apply / Next Steps

Ready to move forward? Take these immediate actions:

1. Confirm you are a UK-registered business (this is mandatory to lead).
2. Convene your potential partners and draft a short one-page project summary describing the demonstration, key risks, deliverables, and scale. Share this internally and with potential supporters.
3. Book time with your finance and legal teams to model the budget and clear institutional sign-off timelines.
4. Read the full competition brief on the Innovate UK Innovation Funding Service so you don’t miss any mandatory documents or state aid details.

Ready to apply? Visit the official opportunity page and follow the application steps:
Apply now: https://www.ukri.org/opportunity/drive35-innovation-fund-demonstrate-2/

If you want, I can help draft a one-page project snapshot you can use to recruit partners or draft the application narrative. Tell me the technology, the intended deployment environment, and the biggest risk you need to address — I’ll write a tight executive summary you can use in the proposal.