Funding competition UK Battery Industrialisation Centre SME Credit Round 1

UK registered micro, small and medium enterprises can apply for a share of up to £1.5 million to increase and facilitate their engagement with the UK Battery Industrialisation Centre (UKBIC). This funding is from the Faraday Battery Challenge.

This competition is now closed.

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Competition sections

Description

Innovate UK, part of UK Research and Innovation, will work with the Faraday Battery Challenge to invest up to £1.5 million in innovation scale-up projects.

The aim of this competition is to:

  • support an SME's research and development for the scale-up of battery technologies within the UK
  • support an SME to access the UK Battery Industrialisation Centre (UKBIC) and demonstrate technologies at suitable scales to customers
  • increase engagement with UKBIC
  • move UK battery innovations from technological potential towards commercial capability
  • develop and secure material and manufacturing supply chains for battery technologies in the UK

Funding support will be offered for labour, travel and subsistence, overheads and subcontracting only. SMEs will be able to access UKBIC's giga-scale facilities for:

  • complete cell development project iterations, for example electrode through cells, includes mixing and coating, calendering and slitting, up to cell assembly, formation and ageing
  • proving electrodes at scale, for example electrode only, includes mixing and coating, calendering and slitting

Your proposal must demonstrate that you have developed or proven your innovation to a technology readiness level (TRL) 5 or above.

In applying to this competition, you are entering into a competitive process. This competition closes at 11am UK time on the deadline stated.

Funding type

Grant

Project size

Your project’s total costs must be between £100,000 and £1.1 million.

Who can apply

Your project

Your project must:

  • have total costs of between £100,000 and £1.1 million
  • start by 1 September 2023
  • end by 31 August 2024
  • last up to 12 months
  • carry out all of its project work in the UK
  • intend to exploit the results from or in the UK

You must only include eligible project costs in your application.

Eligible costs for this grant funding include:

  • labour
  • travel and subsistence
  • subcontracting
  • overheads

Note that all material costs are ineligible in this competition.

Under current restrictions, this competition will not fund any procurement, commercial, business development or supply chain activity with any Russian and Belarusian entity as lead, partner or subcontractor. This includes any goods or services originating from a Russian and Belarusian source.

Lead organisation

To lead a project your organisation must be a UK registered micro, small or medium-sized enterprise (SME).

Subcontractors


The majority of the costs for this grant funding must be subcontracting, of which UKBIC is the only eligible subcontractor for this competition.

All other subcontractor costs will be deemed ineligible, and no other subcontractors will be accepted.

Number of applications

An SME can only submit one application.

Previous applications

You cannot use a previously submitted application to apply for this competition.

We will not award you funding if you have:

Subsidy control (and State aid where applicable)

This competition provides funding in line with the Subsidy Control Act 2022. Further information about the Subsidy requirements can be found within the Subsidy Control Act 2022 (legislation.gov.uk)

Innovate UK is unable to award organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.

EU State aid rules now only apply in limited circumstances. Please see our general guidance to check if these rules apply to your organisation.


Further Information

If you are unsure about your obligations under the Subsidy Control Act 2022 or the State aid rules, you should take independent legal advice. We are unable to advise on individual eligibility or legal obligations.

You must always make sure that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.


This aims to regulate any advantage granted by a public sector body which threatens to, or actually distorts competition in the United Kingdom or any other country or countries.

Funding

Up to £1.5 million has been allocated to fund innovation projects in this competition. Funding will be in the form of a grant.

If your organisation’s work on the project is commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically but for the purpose of this project will be undertaking commercial or economic activity.

For your experimental development project you could get funding for your eligible project costs of up to 45% as a micro, small or medium-sized enterprise (SME).

Your eligible costs for this grant funding must only include:

  • labour
  • travel and subsistence
  • subcontracting
  • overheads

Note that all material costs are ineligible in this competition.

For more information on company sizes, please refer to the company accounts guidance. This is a change from the EU definition unless you are applying under State aid.

If you are applying for an award funded under State aid Regulations, the definitions are set out in the European Commission Recommendation of 6 May 2003.

Your proposal

The aim of this competition is to:

  • support an SME’s research and development for the scale-up of battery technologies within the UK
  • support an SME to access the UK Battery Industrialisation Centre (UKBIC) and demonstrate technologies at suitable scales to customers
  • increase engagement with UKBIC
  • move UK battery innovations from technological potential towards commercial capability
  • develop and secure material and manufacturing supply chains for battery technologies in the UK

Your proposal must demonstrate that you have developed or proven your innovation to a technology readiness level (TRL) 5 or above.

Your proposal must clearly demonstrate:

  • the current maturity of your product or innovation including scale, yield and quality
  • the work done to date to validate and prove your technology at its current level of maturity
  • that your product or innovation is appropriate for, and compatible with the giga-scale pilot-line production facilities at UKBIC, for example, material and scale compatibility
  • how you intend to use the UKBIC giga-scale pilot-line facilities
  • the availability of materials and consumables for the project
  • the nature of the outputs expected from the project
  • if applicable, the volume of product expected at the end of the project
  • how you will validate product performance
  • how the project will accelerate your route to market
  • how you will engage with customers during and following the project
  • how the project outputs and outcomes will facilitate customer engagement

UKBIC operates an advanced and high throughput but conventional Li-ion process line. This means that not all materials or processes will be compatible. Solid State processes are not viable on the existing line at this stage.

Portfolio approach
We want to fund a variety of projects across different technologies, markets, technological maturities, with moderation from UKBIC. We call this a portfolio approach.

Specific themes

Your project is expected to help build and secure the UK supply chain for battery technologies.

Your project must focus on one or more of the following:

  • complete electrode and cell manufacturing processes
  • electrode manufacturing processes at scale
  • new electrode formulations at scale, including those utilising alternative solvents, line compatibility to be confirmed dependent on specific solvent and material
  • trial novel mixing, coating, slitting and calendering, line-side and online gauging, measurement and visions systems

You can also focus on alternative materials or processes that will yield manufacturing energy reduction at scale, for example:

  • materials or processes. not equipment or monitoring, that reduce the need for very dry electrode handling environment
  • reduced electrode drying energy whilst maintaining electrode performance and characteristics

Research categories

We will fund experimental development projects, as defined in the guidance on categories of research.

Projects we will not fund

We are not funding projects that:

  • are focused on module and pack
  • are cells assembly, formation and testing without the electrode stage
  • are non compatible materials, for example Li S
  • are non compatible solvents, for example saline or solvents with a low flash point
  • are non compatible cell formats, for example 46xx, 18650 cylindrical cells and prismatic cells
  • are solid state battery processes
  • use technology which has not been proven at least TRL 5
  • include ineligible costs

We cannot fund projects that are:

  • dependent on export performance, for example giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country
  • dependent on domestic inputs usage, for example giving a subsidy to a baker on the condition that it uses 50% UK flour in their product

16 February 2023
Online briefing event: watch the recording
21 February 2023
Competition opens
4 April 2023 11:00am
Competition closes
19 May 2023
Applicants notified

Before you start

You must read the guidance on applying for a competition on the Innovation Funding Service before you start.

Before submitting, it is the lead applicant’s responsibility to make sure:

  • that all the information provided in the application is correct
  • your proposal meets the eligibility and scope criteria
  • all sections of the application are marked as complete

You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.

What we ask you

The application is split into 3 sections:

  1. Project details.
  2. Application questions.
  3. Finances.

Accessibility and inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes providing support, in the form of reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us. Read more on how we are making our application process more accessible and inclusive for everyone.

You must contact us as early as possible in the application process. We recommend contacting us at least 15 working days before the competition closing date to ensure we can provide you with the most suitable support possible.

You can contact us by emailing support@iuk.ukri.org or calling 0300 321 4357. Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).

1. Project details

This section provides background for your application and is not scored.

Application team

Decide which people from your organisation will work with you on the project and invite those people to help complete the application.

Application details

Give your project’s title, start date and duration.

Research category

Select the type of research you will undertake.

Project summary

Describe your project briefly and be clear about what makes it innovative. We use this section to assign the right experts to assess your application.

Your answer can be up to 400 words long.

Public description

Describe your project in detail and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This could happen before you start your project.

Your answer can be up to 400 words long.

Scope

Describe how your project fits the scope of the competition. If your project is not in scope it will not be sent for assessment. We will tell you the reason why.

Your answer can be up to 400 words long.

2. Application questions

The assessors will score all your answers apart from question 1. You will receive feedback for each scored question. Find out more about how our assessors assess.

You must answer all questions. Do not include any website addresses (URLs) in your answers.

Question 1. Applicant location (not scored)

You must state the name and full registered address of your organisation.

We are collecting this information to understand the geographical location of all applicants.

Question 2. Need or challenge and current status of innovation

What is the business need, technological challenge, or market opportunity behind your innovation? What stage of maturity is your innovation at and how is it compatible with UKBICs requirements?

Explain:

  • the main motivation for the project and your innovation
  • the business need, technological challenge or market opportunity
  • whether you have identified any similar innovation and its current limitations, including those close to market or in development
  • the work you have already done to develop your innovation including information on the facilities used and the scale and quality achieved
  • the current maturity of the design of the product, including metrics pertaining to yield, quality and quantity
  • that your innovation is appropriate for and compatible with the giga-scale pilot-line production at UKBIC, for example, material compatibility

You can submit one technical appendix as evidence to validate the current maturity of your innovation. It can include diagrams and charts. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Your answer to this question can be up to 400 words long.

Question 3. Approach and innovation

What facility access do you require at UKBIC? What approach will you take and where will the focus of your innovation be?

Explain:

  • how you intend you use the UKBIC giga scale pilot-line facilities
  • the availability of materials or consumables appropriate for the facilities
  • the nature of the outputs expected from the project for example, demonstrator, know how, new process, product
  • if applicable, the volume of product expected at the end of the project
  • how you will validate product performance
  • how you will respond to the need, challenge or opportunity identified
  • how will you improve on the similar innovation that you have identified
  • whether the innovation will focus on existing technologies in new areas, the development of new technologies for existing areas or a totally disruptive approach
  • the freedom you have to operate
  • how this project fits with your current product, service lines or offerings
  • how it will make you more competitive

Your answer to this question can be up to 600 words long.

You can submit one technical appendix to support your answer. It can include diagrams and charts. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 4. Team and resources

Who is in the project team and what are their roles?

Explain:

  • the roles, skills and experience of all members of the project team that are relevant to the approach you will be taking
  • the resources, equipment and facilities needed for the project in addition to the use of UKBIC and how you will access them
  • any roles you will need to recruit for

Your answer to this question can be up to 400 words long.

You can submit one appendix with a short summary of the main people working on your project to support your answer. It must be a PDF, up to 4 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 5. Market awareness

What does the market you are targeting look like?

Your answer must focus on your target markets and your innovation. You are not required to make the global strategic case for electric vehicles and batteries.

Describe:

  • the target markets for your project outcomes and any other potential markets (domestic, international or both)
  • the size of the target markets for your project outcomes, backed up by references where available
  • the structure and dynamics of the target markets, including customer segmentation, together with predicted growth rates within clear timeframes
  • the target markets’ main supply or value chains, business models and any barriers to entry that exist
  • the current UK position in targeting these markets
  • the size and main features of any other markets not already listed

If your project is highly innovative, where the market may be unexplored, describe or explain:

  • what the market’s size might be
  • how your project will try to explore the market’s potential

Your answer to this question can be up to 400 words long.

Question 6. Outcomes and route to market

How are you going to grow your business and increase long term productivity as a result of the project?

Explain:

  • your current position in the markets and supply or value chains outlined, and whether you will be extending or establishing your market position
  • your target customers or end users, and the value to them, for example, why they would use or buy your product
  • how you are going to profit from the innovation, including increased revenues or cost reduction
  • how the project will accelerate your route to market
  • how you will engage with customers during or following the project and how the project outputs or outcomes will facilitate customer engagement
  • how the innovation will affect your productivity and growth, in both the short and the long term
  • how you will protect and exploit the outputs of the project, for example through know-how, patenting, designs or changes to your business model
  • your strategy for targeting the other markets you have identified during or after the project

Your answer to this question can be up to 400 words long.

Question 7. Wider impacts

What impact might this project have outside the project team?

Describe and, where possible, measure the economic benefits from the project such as productivity increases and import substitution, to:

  • external parties
  • customers
  • others in the supply chain
  • broader industry
  • the UK economy

Describe and, where possible, measure:

  • any expected impact on government priorities
  • any expected environmental impacts, either positive or negative
  • any expected regional impacts of the project

Describe any expected social impacts, either positive or negative on, for example:

  • quality of life
  • social inclusion or exclusion
  • jobs, such as safeguarding, creating, changing or displacing them
  • education
  • public empowerment
  • health and safety
  • regulations
  • diversity

Your answer to this question can be up to 400 words long.

Question 8. Project management

How will you manage your project effectively?

Explain:

  • the main work packages of your project, indicating the organisation assigned to each and the total cost of each one
  • your approach to project management, identifying any major tools and mechanisms you will use to get a successful and innovative project outcome
  • any critical time dependencies and how you will work with UKBIC to schedule your use of the facility, if you are successful, scheduling your use of the UKBIC facility may result in your project not starting or finishing at the desired time
  • your project plan in enough detail to identify any links or dependencies between work packages or milestones

Your answer to this question can be up to 400 words long.

You must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 9. Risks

What are the main risks for this project?

Describe:

  • the main risks and uncertainties of the project, including the technical, commercial, managerial, environmental and project timeline risks
  • how you will mitigate these risks
  • any project inputs that are critical to completion, such as resources, expertise, and data sets
  • any output likely to be subject to regulatory requirements, certification, ethical issues and so on, and how you will manage this

Your answer to this question can be up to 400 words long.

You must submit a risk register as an appendix to support your answer. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 10. Added value

How will this public funding help you to accelerate or enhance your approach to developing your project towards commercialisation? What impact would this award have on your organisation?

Explain:

  • what advantages public funding would offer your project, for example, appeal to investors, more partners, reduced risk or a faster route to market (this list is not exhaustive)
  • the likely impact of the project outcomes on the organisations involved
  • what other routes of investment you have already approached
  • what your product or innovation development timeline would look like without public funding
  • how this project would change your scale-up activities
  • any perceived benefit to UKBIC in working with you on your product or innovation

Your answer to this question can be up to 400 words long.

Question 11. Costs and value for money

How much will the project cost and how does it represent value for money for the team and the taxpayer?

In terms of your project goals, explain:

  • your total project costs
  • the grant you are requesting
  • how you will finance your contributions to your project
  • how this project represents value for money for you and the taxpayer
  • how it compares to what you would spend your money on otherwise
  • the balance of costs and grant

Your answer to this question can be up to 400 words long.

3. Finances

Your organisation must complete your project costs, organisation details and funding details in the application.

For full details on what costs you can claim see our project costs guidance.

Your eligible costs for this grant funding must only include:

  • labour
  • travel and subsistence
  • subcontracting
  • overheads

Note that no material costs are eligible in this competition.

Background and further information

The UK Battery Industrialisation Centre (UKBIC) is part of the UK Government’s Faraday Battery Challenge providing £130 million from 2017.

The UK Battery Industrialisation Centre (UKBIC) is a pioneering concept in the race to develop battery technology for the transition to a greener future.

The unique facility provides the missing link between battery technology, which has proved promising at laboratory or prototype scale, and successful mass production. Based in Coventry, the publicly-funded battery product development facility welcomes:

  • manufacturers
  • entrepreneurs
  • researchers
  • educators

This can be accessed by any organisation with existing or new battery technology, if that technology will bring green jobs and prosperity to the UK.

UKBIC is a key part of the Faraday Battery Challenge (FBC), a Government programme to fast track the development of cost-effective, high-performance, durable, safe, low-weight and recyclable batteries.

Data sharing

This competition is jointly operated by Innovate UK, and UK Battery Industrialisation Centre (UKBIC) (each an “agency”).

Any relevant information submitted and produced during the application process concerning your application can be shared by one agency with the other, for its individual storage, processing and use.

This means that any information given to or generated by Innovate UK in respect of your application may be passed on to UKBIC and vice versa. This would include, but is not restricted to:

  • the information stated on the application, including the personal details of all applicants
  • scoring and feedback on the application
  • information received during the management and administration of the grant, such as Monitoring Officer reports and Independent Accountant Reports

Innovate UK and UKBIC are directly accountable to you for their holding and processing of your information, including any personal data and confidential information. Data is held in accordance with their own policies. Accordingly, Innovate UK, and UKBIC will be data controllers for personal data submitted during the application. Innovate UK’s Privacy Policy is accessible here.

Innovate UK complies with the requirements of GDPR, and is committed to upholding the data protection principles, and protecting your information. The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.

Support for SMEs from Innovate UK EDGE

If you receive an award, you will be contacted about working with an innovation and growth specialist at Innovate UK EDGE. This service forms part of our funded offer to you.

These specialists focus on growing innovative businesses and ensuring that projects contribute to their growth. Working one-to-one, they can help you to identify your best strategy and harness world-class resources to grow and achieve scale.

We encourage you to engage with Innovate UK EDGE, delivered by a knowledgeable and objective specialist near you.

Next steps

If you are successful with this application, you will be asked to set up your project.

You must follow the unique link embedded in your email notification. This takes you to your IFS Set Up portal, the tool that Innovate UK uses to gather necessary information before we can allow your project to begin.

You will need to provide:

  • the name and contact details of your project manager and project finance lead
  • a redacted copy of your bank details
  • an exploitation plan

In order to process your claims, we need to make sure that the bank details you give to us relate to a UK high street bank that is regulated by the Prudential Regulation Authority (PRA). The account must have a BACS clearing facility and be in the same company name as your application.

If you have any doubts that your bank account will not meet Innovate UK's funding criteria, you can use the sort code checker. If you input the sort code and find a tick next to the ‘BACS Direct Credit payments can be sent to this sort code’, this will give you an indication that the bank account you hold is acceptable.

Finance checks

We will carry out checks to make sure you are an established company with access to the funds necessary to complete the project.

You must check your IFS portal regularly and respond to any requests we have sent for additional information to avoid any delays.

Failure to complete project setup may result in your grant offer being withdrawn.

Your Grant offer letter (GOL)

Once you have successfully completed project setup, we will issue your GOL.

The GOL will be made available on your IFS portal. You will need to sign and upload this before you start your project.

Your GOL will show the start date for your project, do not start your project before this date. Any costs incurred before your start date cannot be claimed as part of your grant.

If your application is unsuccessful

If you are unsuccessful with your application this time, you can view feedback from the assessors. This will be available to you on your IFS portal following notification.

Sometimes your application will have scored well, and you will receive positive comments from the assessors. You may be unsuccessful as your average score was not above the funding threshold or your project has not been selected under the portfolio approach if this is applied for this competition.

Contact us

If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.
Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).

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