DRIVE35 grant funding to develop EV supply chains in the West Midlands

The DRIVE35 initiative aims to accelerate the UK’s transition to electric vehicle (EV) manufacturing and strengthen the automotive sector

About the opportunity

The West Midlands Supplier Readiness and Transformation Fund (SRTF) is a programme that’s part of the national DRIVE35 initiative, which aims to accelerate the UK’s transition to electric vehicle (EV) manufacturing and strengthen the automotive sector. 

This programme provides capital grants of £250,000 – £3,000,000 to support businesses in the West Midlands to scale, diversify, and build critical capacity for EV supply chains. 

The programme is delivered by SWM members West Midlands Combined Authority, funded by the Department for Business and Trade. 

Funding for the SRTF programme will be released in phases across the four year period to March 2030. As opportunities will be available at different points throughout the programme, businesses should consider when potential access to the grant best aligns with their own investment plans and delivery timelines. 

The programme aims to: 

• Support existing West Midlands automotive companies to scale and diversify into wider electrification value chains. 
• Attract and grow new technology companies through inward investment. 

Eligibility criteria 

Full eligibility criteria can be viewed here. 

Below is an outline of the key requirements to help businesses prepare. 

Geography 

Projects must be delivered in Birmingham, Cannock Chase, Coventry, Dudley, North Warwickshire, Nuneaton and Bedworth (inclusive of Mira Technology Park), Redditch, Rugby, Sandwell, Shropshire, Solihull, Stratford-on-Avon, Solihull, Tamworth, Telford and Wrekin, Warwick (inclusive of Greenpower Park), Walsall, Wolverhampton.

Technical requirements  

Projects must: 

• Support industrialisation of EV manufacturing and supply chain transformation at scale
• Be centred around a proven, technically viable, and economically feasible product, process, or technology.
• Fit within the programme’s broad scope, including activities related to: EV manufacturing growth; parts, components, systems, materials; tooling; production processes; and technologies across the full EV supply chain. 

Additional requirements 

Projects must also: 

• Be led by a UK-registered, West Midlands region active business.
• Demonstrate economic value for money, strategic alignment, and commercial viability.
• Meet minimum 50% private match funding requirements.
• Pass all financial due diligence and subsidy control checks.