Referral of the proposed DRIVE35 Scale-Up Grants scheme by UK Research and Innovation
The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to UK Research and Innovation (UKRI) concerning its proposed Scale-Up Grants scheme.
Administrative timetable
| Date | Action |
|---|---|
| 14 August 2025 | SAU’s report to be published |
| 17 July 2025 | Deadline for receipt of any third-party submissions |
| 2 July 2025 | Beginning of reporting period |
Request from UKRI
2 July 2025: The SAU has accepted a request for a report from UKRI concerning the proposed DRIVE35 Scale-Up Grants scheme. This request relates to a Subsidy Scheme of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of the UKRI’s assessment of whether the scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the scheme provided by UKRI
The Government is committed to the long-term success of the UK automotive industry, supporting high skilled, well-paid jobs and economic growth. This new scheme will support the manufacturing process R&D in zero emission vehicle technologies, as part of the DRIVE35 initiative, using R&D grants to fast-track the commercialisation of innovative ZEV technologies through real-world commercial demonstrations, accelerating the market development of R&D initiatives and building a diffused network of homegrown investable prospects. DRIVE35 will support the latest R&D in strategic vehicle technologies, accelerate commercial scale-up, and unlock capital investment in zero emission vehicle manufacturing, batteries and the wider supply chain.
Funding of up to £500m will be committed to automotive R&D as part of DRIVE35. Up to £150m of the funding will be allocated to Scale-Up Grants, with individual subsidies between £2m and £20m. This funding is open to applicants across ZEV manufacturing and ZEV supply chain technologies across the automotive sector. Applicants must be able to demonstrate a wider private investment into the scale-up project, with beneficiaries required to source funding for a portion of the project costs elsewhere.
All funding will be awarded through a competitive process, supporting collaborative and single business R&D projects. Grant award recommendations will be determined by an independent technical assessment conducted by automotive industry experts appointed by Innovate UK, and a value for money assessment performed by analysts in the Department for Business and Trade (DBT). Grant award decisions will be made by DBT Ministers and senior officials and where required HM Treasury, based on the grant award recommendations.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the DRIVE35 Scale-Up Grants scheme, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at SAU-scaleupgrants2025@cma.gov.uk, copying the public authority: subsidy.compliance@uk.ukri.org.
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with UKRI. The SAU will send a copy of your submission to UKRI together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme/grant or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the UKRI using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- SAU project team: SAU-scaleupgrants2025@cma.gov.uk
- CMA press team: 020 3738 6460 or press@cma.gov.uk