The UK’s New EV Funding Strategy – Drive35 Programme Launches with Electric Car Grant and Charging Infrastructure Support

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In July 2025, the UK government unveiled a comprehensive funding initiative to accelerate the transition to electric mobility. Under the ambitious Drive35 programme, the government is investing in both public EV charging infrastructure and a new Electric Car Grant Scheme to boost demand, increase production capacity and expand the national charging network. The initiative forms a key part of the UK’s long-term plan to become a global leader in zero-emission vehicle technologies by 2035.

We provide a concise overview of the key support measures under Drive35.

£63 million for public charging infrastructure and zero-emission HGV innovation

As part of Drive35, the UK government is investing directly in the expansion of on-street charging infrastructure and the development of technologies for electric heavy-duty vehicles. The objective is to close existing infrastructure gaps, particularly in residential areas, and to advance the decarbonisation of commercial transport.

What’s being funded?

£20 million for the On-Street Charging Infrastructure Scheme (OSCI)Supports local authorities in deploying residential kerbside chargepoints
£25 million for the Local EV Infrastructure Fund (LEVI)Funds innovative local EV charging solutions, such as charging hubs
£18 million for zero-emission HGV R&D projectsFocus areas: logistics, long-haul operations, and vehicle testing

Who is eligible?

Local authorities, counties, transport agencies
Research institutions, technology developers
Infrastructure operators with local partnerships

Start of funding:

From the second half of 2025, with multi-year project durations.

New Electric Car Grant Scheme for entry-level EVs

Also integrated into Drive35 is the reintroduced Electric Car Grant Scheme, designed to make entry-level electric vehicles more accessible. The scheme has been updated to reflect current market conditions. Buyers benefit from instant discounts of up to £3,750, applied directly at the point of sale by participating dealers – no separate application required.

What’s eligible?

Only battery-electric vehicles (BEVs) that meet both of the following criteria:

Minimum electric range of 120 miles
List price under £37,000

Grant amounts by vehicle price:

Under £20,000: £3,750
£20,001–£31,999: £3,500
£32,000–£36,999: £3,000
£37,000 and above: Not eligible

Who can apply?

Private individuals residing in the UK
Small businesses based in the UK
Fleet operators with vehicles registered for UK use

Scheme duration:

18 July 2025 to 31 March 2026, or until funds are fully allocated.

M3E supports you with planning, applications and delivery

Whether you’re launching a public charging project, upgrading your site infrastructure, developing an EV strategy or applying for funding – our team at M3E is here to help. We combine in-depth knowledge of UK and EU funding programmes with hands-on experience in sustainable mobility and infrastructure.

Moreover: For a full overview of all relevant EV funding programmes in the UK and across Europe – including public charging, commercial vehicles, photovoltaics and battery storage – explore our Subsidy Database.

We connect financing, strategy and implementation – for your sustainable mobility.