Scheme details
Area: Newcastle upon Tyne, Sunderland, County Durham, Gateshead, South Tyneside, North Tyneside, Northumberland
Categories: Finance & funding, Grant, Business support
Business stage: Trading business
Key contact: North East Growth Hub
Contact email: Srtp@northeast-ca.gov.uk
Page last updated: 09 April 2026
Unlocking Investment in the North East’s Automotive Supply Chain
The North East Supplier Readiness and Transformation Fund is a major new investment programme, supporting the development of an effective, resilient electric vehicle (EV) cluster in the North East.
Part of the national DRIVE35 initiative, the programme will accelerate investment in productivity, competitiveness and growth of the region’s advanced manufacturing supply chain as it transitions towards electrification.
Backed by the Department for Business and Trade and delivered by the North East Combined Authority, the scheme will provide capital grants to help businesses accelerate the transition towards full electrification.
What is the Supplier Readiness and Transformation Fund?
Funding Available: Capital grants from £250,000 up to £3 million up to a maximum of 50% of eligible costs.
Who Can Apply: UK-registered businesses of any size, including those new to the region. Projects must be delivered in the North East Combined Authority geography and demonstrate economic benefit to the region.
Programme Duration: Applications open from April 2026, with all projects to be completed by March 2030.
Eligible Activities: The fund can support a wide range of activities, including any of the following in the supply chain:
- Productivity, competitiveness, growth or inward investment
- Battery and supply chain development, including recycling and gigafactories
- Power electronics, machines, and drives (PEMD)
- Fuel cells and related supply chain
- Process innovation, automation, and/or digital transformation
- Reuse, recycling, and remanufacturing of EV components
- Skills capital and workforce development
Why get involved?
Drive Investment: Access funding to invest in new equipment, processes, and technologies that will keep your business competitive in the transition through hybrids to EV.
Boost Productivity: Join a thriving regional cluster, benefit from knowledge sharing, and tap into a skilled workforce.
Enhance Resilience: Strengthen your position in the supply chain and help build a sustainable, globally competitive EV ecosystem in the North East.
Accelerate Growth: The fund aims to unlock significant private sector investment, sustain and create jobs, supporting the region’s economic growth.
Who is this aimed at?
- Businesses already operating in the automotive or EV & hybrid supply chain looking to, invest, innovate or expand.
- Companies seeking to transition their offer to supply the hybrid/EV sector.
- New investors or technology companies aligned with the supply chain considering establishing a presence in the North East.
How to register your interest
If you’re interested in applying for the Supplier Readiness and Transformation Fund, the first step is to complete a short Expression of Interest (EOI) form.. This will help us understand your project and eligibility and guide you through the next steps.
Your information will be handled in accordance with our privacy policy and shared only with programme partners for the purpose of administering the scheme.
Subsidy Scheme
The North East Combined Authority has, in collaboration with West Midlands Combined Authority, set up a Subsidy Scheme to enable grants under the SRT Scheme to be awarded in compliance with the Subsidy Control Act 2022. A copy of the Subsidy Scheme can be found here, and the Subsidy Scheme conditions can be found here.
