Faraday Challenge: Innovation – research and development

Key Features

UK businesses can apply for a share of up to £30 million to work on innovation projects to design, develop and manufacture batteries for the electrification of vehicles.

Programme:     Faraday Challenge Industrial Strategy Challenge Fund, the Advanced Propulsion Centre in partnership with Innovate UK

Award:     Up to £21m

Opens: 25th Jul 2017

Closes: 14th Sep 2017

! This scheme is now closed

As part of the government’s Faraday Challenge Industrial Strategy Challenge Fund, Innovate UK is to invest up to £30 million in innovation projects. This is to support the UK to lead the world in the design, development and manufacture of future batteries for vehicle electrification.

This competition is the first portion of innovation funding as part of the clean and flexible energy or ‘Faraday’ Challenge.

Projects must support the overall goal of the UK to becoming a global leader in the design, development and manufacture of batteries for electric vehicles.

In line with the objectives of the Faraday Challenge, projects should address the following technical and supply chain challenges:

  • cost: cost reduction at the cell and pack level
  • energy density: increasing Wh/kg per cell
  • power density: increasing kW/kg per pack
  • safety: eliminate thermal runaway risks for enhanced safety
  • temperature: broaden the temperature ranges at which a pack efficiently operates
  • predictability: new models to better predict range and battery health
  • recyclability: towards 95% pack recyclability
  • cell and pack production: innovation in cell, module and pack production
  • battery as a system: battery management systems and integration of cells into modules, packs and vehicles
  • projects that stimulate and broaden innovation in the materials, manufacturing, recycling and charging times of cells, modules and packs

Successful projects will increase productivity, competitiveness and growth for UK businesses.

Total environmental impact should be a key consideration for all projects.

Specific competition themes

Applications are encouraged that:

  • show a clear path towards manufacture and commercial opportunity, at scale, in the UK
  • build on successful fundamental research already completed, in partnership with the UK’s research base
  • focus on maximising UK return from the battery supply value chain, for example in the manufacture and IP related to electrodes
  • support all aspects of the UK’s automotive sector battery supply chain, including niche vehicles and off highway
  • have a clear focus on commercialisation in the UK at high volume


To be eligible you must:

  • be a UK-based business or research and technology organisation working within the limits provided in the general guidance for applicants
  • carry out your project work, and intend to exploit the results, in the UK
  • work in collaboration with other grant claiming partners (businesses, research organisations and/or third sector)

Funding and project details

The Department for Business, Energy and Industrial Strategy and Innovate UK have allocated up to £30 million for collaborative research and development projects. They should address the technical and commercial challenges identified in the scope section.

Projects should address the technical and commercial challenges identified in the scope section. Projects must clearly show how their technology is drawing from fundamental research and can be scaled up, and therefore how the project builds a future UK supply chain for automotive traction battery applications.

All projects must be collaborative and involve at least one SME.

Project types

For industrial research you could get:

up to 70% of your eligible project costs if you are an SME.

For experimental development projects which are nearer to market, you could get:

up to 45% of your eligible project costs if you are an SME