NAA Update: DRIVE35 Funding Programme to provide £2.5 billion of funding for zero emission vehicles
The DRIVE35 Funding Programme will provide capital and R&D funding for the UK automotive industry in the design, development and manufacturing of zero emission vehicles and their supply chain.
Welcome to this month’s newsletter, and I hope you are all keeping well and that you were able to take a summer break.
I want to begin with some really welcome news for our sector with the announcement from the Department for Business and Trade last month of the DRIVE35 Funding Programme, which will provide capital and R&D funding for the UK automotive industry in the design, development and manufacturing of zero-emission vehicles and their supply chain.
A total of £2.5 billion of capital and R&D funding is available via DRIVE35, including £500 million to 2035 to extend R&D support for 10 years.
DRIVE35 is composed of three funding pillars, each with individual competition streams. The funding amount available for applicants varies according to each stream.
Find out more about the DRIVE35 Funding Programme and its 3 funding pillars.
DRIVE35 (Driving Research & Investment in Vehicle Electrification) is led and delivered by the Department for Business and Trade (DBT) in partnership with:
- the Advanced Propulsion Centre (APC)
- Innovate UK
If you believe that your business may be eligible for funding support, you can find out further details via the APC website here Automotive funding opportunities.
Global Business Innovation Programme
Innovate UK is inviting ambitious innovative companies to participate in its Global Business Innovation Programme (GBIP).
They are welcoming applications from businesses developing innovative hydrogen in transport technologies in the following areas:
- Transport use cases (road and rail freight, public transport, LA owned HGVs, maritime, aviation), both the UK and Germany have shown that industrial decarbonisation is a priority;
- Refuelling, transporting, and storing hydrogen.
All applications must be made online through the Innovate UK Website and received no later than midnight on 28 September 2025.
To support potential applicants, an online briefing will take place. Register here to join the briefing on Wednesday 10 September 2025.
Lancashire Apprenticeship Incentive
There are just eight weeks left for businesses to claim the Lancashire Apprenticeship Incentive.
Lancashire County Council announced funding at the beginning of November 2024, to incentivise small and medium employers in Lancashire to recruit young apprentices.
There are 100 incentive payments of £3,000 to Lancashire employers who recruit, and employ, an apprentice under twenty-five years old before 31st October – full details here.
New NAA members
Moving on to the membership side, we would like to welcome seven new members:
European Metal Recycling – With a history spanning over 70 years, EMR works with international automotive companies, government bodies, and blue chips, plus a vast number of businesses in industries such as demolition, construction, and electronics, to turn their waste into a valuable resource.
First Graphene UK – the leading graphene supplier in the commercial-scale manufacture of high-quality graphene products, for use as an advanced material additive in composites, thermoplastics, and coatings.
K&M Precision Engineering – Based in the North West of England K&M Precision Engineering Ltd is a leading provider of CNC machined components across all sectors with 5 Axis capabilities and the latest CAD/CAM technology with CMM inspection.
MLR Networks – Offers a range of solutions to deliver the modern workplace, including foundational structured cabling, enterprise networking, and unified communication and collaboration applications.
Pendle Polymer – Specialising in the design and manufacture of antivibration solutions and engineered rubber products for global transport and industry.
Tedom Power UK – Helps businesses reduce energy costs, lower their carbon footprint, and accelerate sustainability through fully funded renewable energy projects.
Wenzel UK – Specialising in industrial measurement technology, Wenzel UK offers tailored solutions: from coordinate and gear measurement machines to industrial CT systems and powerful software.
We’re looking forward to working with each of these new members and welcoming them to our ongoing networking event programme during the course of this year.
Paul Jones
NAA CEO
