DRIVE35 Innovation Fund: Collaborate 2

The DRIVE35 Innovation Fund: Collaborate 2 is a Department for Business and Trade led programme providing up to £33 million in funding for late-stage collaborative R&D projects that support the UK's transition to zero emission vehicles and net zero automotive industry. This strand specifically targets late-stage R&D projects with total grant funding requests between £2.5 million and £25 million per project, running 18-36 months, and achieving Technology Readiness Levels (TRL) 7-8 or Manufacturing Readiness Levels (MRL) 6-7 by completion. Projects must be collaborative and include a vehicle manufacturer or Tier 1 supplier, as well as at least one UK SME. The program requires a minimum of 50% match funding and focuses on three key themes: promoting zero emission vehicle technologies, enhancing manufacturing competitiveness, and advancing software-defined vehicles (SDV) and electrical/electronic (E/E) architectures. The initiative supports R&D projects that design, develop, and manufacture strategically important technologies in the automotive sector, with clear articulation of post-project commercialisation plans. Projects must create and safeguard high-value jobs, support growth and security of the UK's automotive supply chain, and contribute to the UK's Industrial Strategy and Automotive Council's Roadmaps. All project work must be carried out in the UK with results exploited from or in the UK.