APC26: Industrialising net zero automotive technology

Overview

Innovate UK, part of UK Research and Innovation, will work with the Department of Business and Trade (DBT) through the Advanced Propulsion Centre (APC), the automotive industry and academia. We want to accelerate the industrialisation of strategically important vehicle technologies, digital optimisation and manufacturing processes. These processes support the UK’s transition to a zero emissions automotive industry.

APC’s in-depth knowledge and expertise in new propulsion technologies, will help you with building and advising your project and supporting you to start quickly. Your supported project will deliver increased value, safeguard skilled jobs and keep the UK automotive industry competitive.

Innovate UK are working to drive innovation and encourage collaboration to build the foundations for a successful and sustainable UK automotive value and supply chain.

Scope

The aim of this competition is to support collaborative R&D projects that design, develop and manufacture technology. These projects will support the UK’s transition to zero-emission vehicles and a pathway to a net zero automotive industry.

Your project must:

contribute to the UK’s strategic aims and direction of travel towards zero- emission transport vision, such as the Automotive Council’s Roadmaps
deliver on-vehicle technologies or associated manufacturing processes which support the transition to a net zero automotive industry
support growth, transition and security of the UK’s automotive supply chain, increasing capability, whilst improving productivity, efficiency and competitiveness
target post project commercialisation

Your project must advance technologies in one or more of the following areas:

energy storage batteries, their components, management and integration systems
fuel cells, fuel cell systems and associated balance of plant
electric machines and associated driveline
power electronics
internal combustion engine (ICE) for on-road applications, we will only fund project proposals which aim to achieve zero harmful tailpipe emissions utilising non-fossil fuels
internal combustion engine (ICE) for off-road applications, we will fund project proposals that support a transition to zero emissions, utilising non-fossil fuels
lightweighting materials, methods and processes
hydrogen storage and management systems

 Your project can:

be focussed on design for circular economy, including the disassembly, recovery, and reuse of materials used in the project technologies
be focussed on physical, digital, or a combination toward the development of zero emission vehicle innovation, manufacture of vehicle systems and sub-systems, data analytics, redesign, test and validation and verification

The economic benefit of your project will be assessed on criteria including but not limited to:

scale and impact on the UK economy
foreign investment anchored in the UK
jobs created or safeguarded
upskilling or reskilling of workforce
automotive supply chain in the UK: upstream, mid-stream and downstream
lifetime environmental impact of the vehicle and circular economy models

Your proposal must evidence:

a clear route to market exploitation, that can be evidenced, including intellectual property (IP) generated for the UK
a credible consortium-led approach to the project, agreed in principle and able to proceed to a formal collaborative agreement
what would happen should the project not be funded
a demonstration of the outcomes by all partners, the costs can be claimed only if conducted before the end of the project duration

 You are encouraged to disseminate your results to bring benefit to the wider UK automotive industry.

Eligibility

Your project must:

have a total eligible grant funding request of between £2.5million and £20 million
be a minimum of 50% match funding, for example, if you are asking for £2.5 million in grant your total eligible project costs need to be a minimum of £5 million
have a minimum of 70% of your project’s total eligible costs being incurred by commercial organisations
last between 18 and 36 months
carry out all of its project work in the UK
intend to exploit the results from or in the UK
start by 1 August 2025
end on 31 July 2028

Projects must always start on the first of the month, even if this is a non-working day. You must not start your project until your Grant Offer Letter has been approved by Innovate UK. Any delays within Project Setup may mean we need to delay your project start date.

You must only include eligible project costs in your application. See our overview of eligible project costs. For specific guidance, see the eligibility section in this competition.

If your project’s total grant funding request or duration falls outside of our eligibility criteria, you must provide justification by email to info@apcuk.co.uk at least 10 working days before the competition closes. We will decide whether to approve your request.

If you have not requested approval or your application has not been approved by APC, you will be made ineligible. Your application will then not be sent for assessment.

Lead organisation

To lead a project your organisation must:

be a UK registered business of any size
collaborate with other UK registered organisations
involve at least one grant claiming micro, small or medium sized enterprise (SME)
be a grant claiming recipient
include in your consortium a vehicle manufacturer or Tier 1 supplier who supplies parts directly to an original equipment manufacturer (OEM)

More information on the different types of organisation can be found in our Funding rules.

Academic institutions cannot lead or work alone.

Project team

To collaborate with the lead, your organisation must be one of the following UK registered:

business of any size
academic institution
charity
not for profit
public sector organisation
research and technology organisation (RTO)

Non-UK registered businesses and research organisations are only eligible to apply for funding if:

an active UK registered business is set up through which the funded project work will be carried out
evidence is provided of an intention to expand the R&D activity in the UK during and after the project

A company registration number starting with a FC or BR is not considered as a UK registered business and not eligible to apply for funding.

Each partner organisation must be invited into the Innovation Funding Service (IFS) by the lead to collaborate on a project. Once partners have accepted the invitation, they will be asked to login or to create an account in IFS. They are responsible for entering their own project costs in the application.

To be an eligible collaboration, the lead and at least one other organisation must apply for funding when entering their costs into the application.

Non-funded partners

Your project can include non-UK partners, including partners based in the EU, who bring their own funding. Non-UK partners are permitted to carry out project work from within their home countries and exploit results overseas. Their costs will count towards the total eligible project costs.

Subcontractors

Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you cannot use suppliers from the UK.

You must provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

All subcontractor costs must be justified and appropriate to the total project costs.

Number of applications

There is no limit on the number of applications an organisation can be involved in.

Sanctions

This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.

Use of animals in research and innovation

Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

You can use a previously submitted application to apply for this competition.

Exclusions

Innovate UK are not funding projects that are:

only focussed on the development of clean fuels
not aligned with the UK net zero research innovations framework
requesting more than 50% grant for total project costs
developing either e-Scooters or e-Bikes

Innovate UK cannot fund projects that are:

dependent on export performance, for example, giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country
dependent on domestic inputs usage, for example, giving a subsidy to a baker on the condition that it uses 50% UK flour in their product

Funding Costs

Up to £40 million UK Government grant funding has been allocated to fund late stage R&D projects in this competition. Funding will be in the form of a grant.

These are pre-production projects and you must apply for the minimum amount of grant funding required to make your project viable.

Your total grant funding request must be no more than £20 million and no more than 50% of your total eligible project costs. This is regardless of your individual partners’ grant claims.

A minimum of 70% of your project’s total project costs must be incurred by commercial organisations.

If your organisation’s work on the project is commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically but for the purpose of this project will be undertaking commercial or economic activity.

The balance between your total eligible project costs and the amount of grant awarded must be funded by the organisation receiving the grant.

For industrial research projects, you can get funding for your eligible project costs of:

up to 70% if you are a micro or small organisation
up to 60% if you are a medium sized organisation
up to 50% if you are a large organisation

For experimental development projects which are nearer to market, you can get funding for your eligible project costs of:

up to 45% if you are a micro or small organisation
up to 35% if you are a medium sized organisation
up to 25% if you are a large organisation

For more information on company sizes, please refer to the company accounts guidance.

If you are applying for an award funded under State aid Regulations, the definitions are set out in the European Commission Recommendation of 6 May 2003.

Research participation

The research organisations undertaking non-economic activity as part of the project can share up to 30% of the total eligible project costs. If your consortium contains more than one research organisation undertaking non-economic activity, this maximum is shared between them. Of that 30% you can get funding for your eligible project costs of up to:

80% of full economic costs (FEC) if you are a Je-S registered institution such as an academic
100% of your eligible project costs if you are an RTO, charity, not for profit organisation, public sector organisation or research organisation

Advanced Propulsion Industrial Contribution

A 3.5% industrial contribution is payable to the APC by all partners on grant received.

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