DRIVE35 Supplier Readiness and Transformation Fund
Funds West Midlands businesses scaling EV supply-chain manufacturing capacity through capital grants.
Eligibility · West Midlands, United Kingdom
The DRIVE35 Supplier Readiness and Transformation Fund is a West Midlands Combined Authority capital grant programme for businesses investing in EV manufacturing and supply-chain capacity. It is part of the national DRIVE35 initiative and is funded by the Department for Business and Trade. The programme runs as a four-year pilot from April 2026 to March 2030, with funding released in phases and expressions of interest open throughout the programme subject to availability.
Capital grants range from GBP 250,000 to GBP 3,000,000 per project. The subsidy scheme says the West Midlands allocation cannot exceed GBP 50 million during the term, and each project must provide at least 50% private sector match funding. Eligible costs are capital expenditure only, such as machinery, tooling, equipment, production lines, facilities, digital infrastructure, automation systems, or fit-out of industrial space. Revenue costs such as staff time, marketing, and general operating costs are out of scope.
Applicants must be UK-registered businesses active in the West Midlands region, or otherwise meet the stated local authority geography. Projects must support industrialisation or scaling of EV-related manufacturing, be based on a proven and commercially viable product, process, or technology, and show strategic fit, commercial viability, value for money, due diligence clearance, and subsidy-control compliance.
The current route begins with an expression of interest form returned by email to the programme team. Potential applicants may then be directed into a two-stage competitive process with Stage 1 and full applications. The source says early full applications run through June to August 2026, with first grant offers expected after final due diligence in September 2026.
Capital investment for EV manufacturing and supply-chain industrialisation, including parts, components, systems, materials, tooling, production processes, battery technologies, electric motors, power electronics, fuel-cell systems, automation, robotics, digital manufacturing technologies, and EV-related skills infrastructure.
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