AUTOMOTIVE TRANSFORMATION FUND AUGUST 2020 – FRAMEWORK AGREEMENT – FUNDING

1. Title: AUTOMOTIVE TRANSFORMATION FUND AUGUST 2020 – FRAMEWORK AGREEMENT – FUNDING2. Awarding Authority: Innovate UK, The Advanced Propulsion Centre (APC), GB Tel: 0300 321 4357. Email: ATF@apcuk.co.uk / support@innovateuk.ukri.org. (Innovate UK competition helpline)3. Contract type: Service contract4. Description: The Automotive Transformation Fund is a new programme that aims to establish a competitive and sustainable specified location supply chain.It offers a share of up to £1 billion of funding for industrial research and capital projects. This will be to support the industrialisation of a high-value, electrified automotive supply at scale in the UK.This is an expression of interest (EoI) competition. If your application is successful you will be invited to apply to one of the full stage competition strands:Research and development (R&D).Capital investment.If your project includes both R&D and capital investment you will have to apply for both full stage competitions.The competition closes at 11 am UK time on the deadline stated.5. CPV Code(s): 73110000, 731000006. NUTS code(s): UKK, UKK1, UKK147. Main site or location of works, main place of delivery or main place of performance: UK8. Reference attributed by awarding authority: Not provided.9. Estimated value of requirement: UK registered businesses can apply for a share of up to £1 billion for R&D and capital projects that help industrialise the electrified automotive supply chain at scale in the UK.FundingUK registered businesses can apply for a share of up to £1 billion to fund innovation projects in this competition.If your organisation’s work on the project is mostly commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically.Industry led research projectsFor industry led research projects, your total grant funding must not exceed 50% of your total eligible project costs. This is regardless of the individual partners’ grant claims. Of that 50%, you could get funding for your eligible project costs of up to:70% of your eligible project costs if you are a micro or small organisation60% of your eligible project costs if you are a medium-sized organisation50% of your eligible project costs if you are a large organisationThe 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%, research organisations in the consortium could get funding for their eligible project costs of up to:80% of full economic costs (FEC) if they are an academic institution100% of their eligible project costs if they are an RTOResearch projects are funded under article 25, ‘Aid for research, development and innovation’ of the General Block Exemption Regulation (GBER). It is your responsibility to make sure that your organisation is eligible to receive state aid.Capital investment projectsCapital projects will be managed through the Automotive Transformation Fund capex team and BEIS.For capital projects the grant available is dependent on the proposed project and will be determined during the second stage of the application process. The grant requested should be the minimum required to ensure sustainability of the investment.Further information on the process will be provided at the full stage.10. Competition closes: 2.9.2020 (11:00:00).11. Address to which they must be sent: For further information regarding the above contract notice please visit: 12. Other information: Competition opens: Monday 10 August 2020Competition closes: Wednesday 2 September 2020 11:00amFunding type GrantProject sizeTotal eligible project costs and project duration must be appropriate and in proportion to the planned objectives and prioritisation of the Automotive Transformation Fund.Who can applyState aidAny UK registered business claiming grant funding must be eligible to receive State aid at the time we confirm you will be awarded funding. It is not possible to award grant funding to organisations meeting the condition known as undertakings in difficulty. If you are unsure please take legal advice. For further information see our general guidance on state aid.Your business does not have to be UK registered with Companies House when you apply, but it must be registered before you can receive funding.Your total eligible project costs and project duration must be appropriate and in proportion to the planned objectives and prioritisation within the Automotive Transformation Fund.If your project’s total eligible costs or duration fall outside of the above criteria, you must contact the Advanced Propulsion Centre (APC) directly at ATF@apcuk.ci.uk at least 10 days before the competition closes. APC will decide whether to approve your request.Lead organisationTo lead a project or work alone your organisation must:be a UK registered business of any sizecarry out its project work in the UKexploit the results from or in the UKaddress the requirements of the Automotive Transformation FundProject teamTo collaborate with the lead organisation your organisation must:be a UK registered business, academic institution, charity, public sector organisation or RTOcarry out its project work in the UKintend to exploit the results from or in the UKbe invited to take part by the lead applicantIf you are working in a collaboration the lead and at least one other organisation must claim funding through the Innovation Funding Service.There are no restrictions on the number of applications a business or RTO can submit.Previous applicationsResubmissionsYou can use a resubmission to apply for this competition. A resubmission is a proposal Innovate UK judges as not materially different from one you’ve submitted before. It can be updated based on the assessors’ feedback. If you submit a new proposal this time you will be able to use it in no more than one future competition that allows resubmissions.Your proposalYour project must have a potential automotive application.You can submit more than one application. Each application can focus on:research and development (R&D) onlycapital investment onlyorboth R&D and capital investmentsYour proposal must prioritise the scale up in areas mentioned in the Automotive Transformation Strategy. This includes but is not limited to:batteriesmotors and drivespower electronicsfuel cellrecycling of any of the aboveMore detail is available in ‘specific themes’ below.Only projects which score well against the following criteria will receive funding from the Automotive Transformation Fund:fit with the Automotive Transformation Fundvalue for money for the UKongoing benefit to the UK from the exploitation of your projectproject deliverables such as time, cost and quality (including risks)The Advanced Propulsion Centre (APC) can help you check whether your project fits the Automotive Transformation Fund. Contact the APC team at ATF@apcuk.co.uk to find out more.Specific themesYour project can focus on one or more of the following.Batteries:cathode materials and manufacturinganode materials and manufacturingelectrolytecell assembly components (including separators)cell or module assemblycell testingbattery pack componentsbattery pack assembly and testMotors and drives:magnet materials and manufacturingelectrical steel materials and manufacturingelectrical machine assemblydrive line componentsassembly and test into complete drive unitPower electronics:wide band gap semi-conductorssensorspassivespower electronics assemblyFuel cell:MEAcatalystsbipolar platesgas diffusion layerair handling systemsbalance of powerfuel cell stack assemblystorage tanksfuel delivery (where specifically required for development purposes)Recycling:e-motorsbatteriesfuel cellspower electronicsThe Automotive Transformation Fund provides detailed information on the specific themes of this competition.Research categoriesIn the full stage competitions, the Automotive Transformation Fund will fund:industrial research (as defined in the categories of research and development section of the Innovate UK general guidance) under article 25, ‘Aid for research and development projects’capital investment under the Automotive Transformation Fund capex team and BEISProjects we will not fundWe are not funding R&D that involves low-carbon fuels development.We are not funding capital investments that:include investment in final electric vehicle assembly at original equipment manufacturers (OEM)are related to charging infrastructuresupports retail and wholesale fuel supply (except where used for own development purposes)10 August 2020 Competition opens2 September 2020 11:00am Competition closes18 September 2020 Applicants notifiedBefore you startYou must read the guidance on applying for a competition on the Innovation Funding Service before you start.Innovate UK is unable to award grant funding to organisations meeting the condition known as undertakings in difficulty (UiD). However, as per the amendment on 2 July 2020 to the General Block Exemption regulation, we will provide funding to organisations that can prove they were not a UiD on the date of 31 December 2019 but became a UiD between 1 January 2020 and 30 June 2021. We will ask for evidence of this.You should also read specific information about this programme before you start your application.What we ask youThe application is split into 2 sections:Project details.Application questions.1. Project detailsThis section provides background for the assessors and is not scored.Application typeWhat are you seeking funding for? Type one of the following:an R&D projecta capital investment projecta mixed R&D and capital investment projectEquality, diversity and inclusion (EDI)We collect and report on equality, diversity and inclusion (EDI) data to address under-representation in business innovation and ensure equality, diversity and inclusion across all our activities.You must complete this EDI survey (opens in a new window) and type ‘EDI survey completed’ within your answer. The survey will ask you questions on your gender, age, ethnicity, and disability status. You will always have the option to ‘prefer not to say’ if you do not feel comfortable sharing this information.Project summaryProvide a summary of the objectives, content, and output of the proposed project, covering the following elements:overview and purpose of the projectoutput or results of the projectanticipated route to marketmarket opportunity being addressedamount of grant support requestedtotal anticipated budgetThis section is mandatory but is not scored. However, it is a vital part of the application, setting the scene and providing assessors with a clear overview of the project.Your answer can be up to 400 words long.2. Application questionsThe assessors will score your answers.. You will receive feedback from them for each one.Your answer to each question can be up to 400 words long. Do not include any website addresses (URLs) in your answers.Question 1. Automotive Transformation FundHow does your project align with the Automotive Transformation Fund?Demonstrate how your project aligns to the competition objectives, associated focus areas and overall aims of the automotive Transformation Fund. Provide up to date evidence where possible.Describe:which area of the Automotive Transformation Fund your project will help deliveryour current role in the UK supply chain and how this project will change thathow your project will help delivery scale up in the UKYou can submit one appendix. It can include diagrams and charts. It must be a PDF and can be up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.Question 2. Exploitation and disseminationHow will you exploit and disseminate your project results? What economic, social and environmental benefits do you expect your project to deliver, and by when?Consider:expected project outputs, including products, services, processes, and capabilitiesyour initial exploitation plan: the route to market, intellectual property, changes to business models or processes, research, and development (R&D), and manufacturing servicesspill-over or dissemination of ideas, demonstrating how your activities will contribute to the wider automotive industry and other sectorsthe UK benefits expected to be delivered as a result of this project, such as R&D and capital expenditure, supply chain, jobs, training and skills, and environmental benefitsQuestion 3. Technical approach and managementWhat technical approach will you use and how will you manage your project?Describe or explain:the technical approach, including the main objectives of the workhow you will improve on the nearest current state-of-the-art identifiedhow and why the approach is appropriatehow you will make sure the innovative steps in the project are achievablehow you will measure your successthe areas of work and your objectivesYou must submit a work breakdown structure (including the cost of each work package) in a one A4 page PDF appendix to support your answer. It must be legible at 100% zoom and no larger than 10MB in size.Question 4. Market awarenessWhat does the market you are targeting look like?Describe or explain:the markets (domestic, international or both) you will be targeting in the project, and any other potential marketsthe size of the target markets for the project outcomes, backed up by references where availablethe structure and dynamics of the target markets, including customer segmentation, together with predicted growth rates within clear timeframesthe target markets’ main supply or value chains and business models, and any barriers to entry that existthe current UK position in targeting these marketsthe size and main features of any other markets not already listedIf your project is highly innovative, where the market may be unexplored, describe or explain:what the market’s size might to behow your project will try to explore the market’s potentialQuestion 5. Skills, experience, and facilitiesDoes your proposed project team have the right skills, experience, and facilities to deliver this project?Demonstrate that the likely project team:has the right mix of skills and experience to complete the projecthas a track record in managing research and development projectshas clear objectives and roles or responsibilitiesIf you are part of a consortium, describe the benefits of the collaboration. What advantages does being part of a consortium offer the project?Question 6. Adding valueHow does financial support from the Automotive Transformation Fund add value to the UK? What will happen to the project in the absence of funding?Answer both of the following:why do you need this funding? Explain what other sources of funding have been considered, including private investment, and why it is not available.what will happen to the project in the absence of funding? Describe and provide evidence for what will occur if the application for funding is not successfulQuestion 7. FinancesProvide us with estimates of partners’ eligible costs and the funding you are seeking.Type ‘Table attached’ below and give your estimates in a table as an attached appendix. Give details of the total eligible costs and total funding requested for this project.Give your table the following headings:partner’s namecountry where work is being carried outpartner’s eligible costs (£)funding sought by partner (£)The funding sought by a partner can be zero.You must submit a summary of your estimated costs as a table in a one A4 page PDF or spreadsheet. It must be legible at 100% zoom and no larger than 10MB in size.Background and further informationIntended to support industrialisation at scale of a high-value electrified automotive supply chain in the UK, the Automotive Transformation Fund (ATF) is a new programme funded by the UK government. Its aim is to establish a competitive and sustainable UK supply chain.Formed in 2013 the Advanced Propulsion Centre accelerates the industrialisation of technologies which help to realise zero emission vehicles. It is at the heart of the UK Government’s commitment to achieving net-zero emissions by 2050. The APC was appointed as the main Automotive Transformation Fund delivery organisation.This Automotive Transformation Fund competition is formally delivered in partnership between APC, Innovate UK, the Department for Business, Energy and Industrial Strategy (BEIS) and Department for International Trade (DIT).For R&D projects, Innovate UK will deliver the competition process, technical assessment framework and contracting.For capital investment projects, the Automotive Transformation Fund capex team at BEIS will deliver the competition process, assessment framework and contracting.The value for money that the proposed project will deliver to the UK economy will be assessed by BEIS.Where a project is linked to overseas investment in the UK, or export of goods from the UK, DIT will:provide reasons why an overseas business should invest in the UKassist with sector-specific information about the UK economyprovide a way for overseas businesses to contact DIT staff in their countryAPC can help by:co-ordinating your application through all the necessary steps.providing general guidance regarding interpretation of competition rules and guidelines on an informal basis.helping your consortium to structure the bid development processanswering questions regarding whether or not your project is within scopeIn securing R&D funding from this programme, each participant receiving a grant will pay an industrial contribution to the APC operating budget. This will be proportional to its grant and is set at 3%.Any information received by Innovate UK for this competition may be shared with APC, BEIS, DIT, HM Treasury and the devolved administrations. There is a data sharing agreement in place with these bodies which safeguards both personal and commercial data in accordance with data protection legislation.Get help with your applicationNote that the APC role is to provide indicative guidance rather than formal advice. To contact APC email ATF@apcuk.co.uk .If you need assistance using the Innovation Funding Service, email support@innovateuk.ukri.org or call the Innovate UK competition helpline on 0300 321 4357.Our phone lines are open from 9am to 11:30am and 2pm to 4:30pm, Monday to Friday (excluding bank holidays).Enterprise Europe NetworkIf you are a UK SME and are successful in receiving an award, you will be contacted by your local Enterprise Europe Network (EEN) Innovation Advisor. They act on behalf of Innovate UK to discuss the growth opportunities for your business.They offer bespoke business support services to help you maximise your project and business potential. This service forms part of your Innovate UK offer under our commitment to help UK SMEs grow and scale.Please engage positively with your EEN contact so that, working together, you can determine the most appropriate form of growth support for your business.# funding opportunity