CfI: Battery innovation for dual use & defence Phase 1
Organisations can apply for a share of £2 million, inclusive of VAT, to develop industrial research solutions to strengthen supply chain resilience and onshore critical dual use capabilities.
- Competition opens: Monday 28 September 2026
- Competition closes: Wednesday 4 November 2026 11:00am
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Description
The Department for Business, Innovation, Science and Trade (BIST) through Innovate UK, part of UK Research and Innovation (UKRI), will invest up to £2 million in this Contracts for Innovation competition. The battery innovation programme will enhance defence resilience and security of supply by accelerating deployment of technologies maturing in the civil battery market, adapting them for defence sector challenges, strengthening UK battery manufacturing, reducing reliance on overseas suppliers, securing dual‑use supply chains and creating opportunities for UK businesses. The aim is to accelerate development of innovative battery technologies addressing defence sector challenges. This is phase 1 of a potential two‑phase competition; phase 2 depends on phase 1 outcomes and a separate application. Funding is subject to receiving sufficient high‑quality applications.
Funding type
Procurement
Project size
Phase 1 projects: total eligible costs between £20,000 and £50,000 inclusive of VAT, up to 3 months duration.
Accessibility and Inclusion
We welcome applications from all backgrounds and will make reasonable adjustments for disabled applicants. Contact Innovate UK by email or 0300 321 4357 (9am‑12pm, 2pm‑5pm UK time, Mon‑Fri, excl. bank holidays).
Who can apply
Project
- Start by 1 Jan 2027, end by 31 Mar 2027, max 3 months.
- Total costs £20k‑£50k inclusive VAT, all spent before 31 Mar 2027.
- Must start on the first of the month; cannot start before contract approval.
- Only eligible costs may be included. Applicant
- Any size organisation, EU/EEA/international allowed.
- May work alone or with subcontracted skills from business, research organisations, RTOS, third sector.
- Contract awarded to a single legal entity; majority work and key deliverables by applicant in UK; most funding spent in UK. Subcontractors only for specialist skills. Sanctions – No funding to those involved with UK‑sanctioned entities. Animal use – Must comply with UKRI guidance on animal welfare.
Funding
Up to £2 million inclusive VAT allocated; contracts £20k‑£50k each, up to 3 months, expect ~40 projects. Funding is a contract. VAT rules: if VAT‑registered, enter costs ex‑VAT; total inclusive VAT ≤£50k. If not VAT‑registered, total project costs ≤£50k. At least 50% of contract value must be R&D activities (exploration, design, prototyping, field‑testing); excludes commercial production, supply to recover R&D, integration/adaptations.
Subsidy control
Contracts for Innovation are procurement of R&D services, exempt from subsidy control under Procurement Act 2023.
Your project
The programme focuses on industrial research, higher TRL projects, covering defence‑sector challenge areas:
- UK‑based high‑performance cell manufacturing (pouch, primary, Li‑S, Li‑metal, Na‑ion) with secure domestic sourcing, minimal foreign dependency, scalable defence production.
- Define effective standardisation level (cell, pack, interface, use case) for seamless dual‑use integration.
- UK‑based design/manufacture of battery packs using 18650/21700 cells; evaluate 21700 vs 18650; include soldier, drone, generator replacements, BB‑2590/STUB demonstrators.
- UK low‑volume/custom cell manufacture: pilot‑line adaptability, sovereign IP/tooling control, reliable precursor supply chains.
- Progression of UK High Power (UKHP) cell production: advance maturity, manufacturability, performance baseline; de‑risk designs for high continuous/pulse discharge.
- UK‑based Battery Management Systems (BMS): secure, modular, resilient; multi‑chemistry monitoring, adaptive SoC/SoH, active balancing, advanced thermal management; cyber‑secure firmware, trusted component sourcing with minimal foreign silicon.
- Integration of civilian automotive battery modules into defence: feasibility, safety, ruggedisation for extreme environments, modification to military specs, supply‑chain security, lifecycle, obsolescence assessment.
- Dual‑use transition of defence standard batteries (Li‑ion 6T, BB‑2590) into civilian markets: identify sectors where ruggedisation/standardisation adds value.
Deliverables
- Use case – based on challenge areas; cover technical/user requirements, operational guidelines, architecture, security, standards; demonstrate practical application, support further development, consider supply‑chain resilience, state assumptions, secure battery access, align with MoD supply‑chain risk appetite; shared with BIST, MoD, subsidiaries.
- Outline business case – based on use case; include business need, market analysis, stakeholder mapping/engagement, supply‑chain mapping, commercialisation strategy, strategic alignment, economic viability, commercial barriers; demonstrate commercial viability; shared with BIST, MoD, subsidiaries.
Successful projects must show technology meeting defence challenges via simulation, prototyping, demonstrator trials, etc.; attend programme event for updates. Focus must be on battery cell manufacturing or pack design for defence; define goals and phase 2 plan; include commercialisation route; contracts awarded for phase 1 only; phase 2 may follow subject to funding.
Portfolio approach – fund diverse technologies/markets; assessed by BIST and MoD; all costs reviewed for value‑for‑money.
Specific themes
Project must deliver both a use case and an outline business case.
Research categories
- Phase 1: industrial research – planned investigation for new knowledge to improve products/processes/services.
- Phase 2: prototype development & evaluation – prototyping, demonstrating, piloting, testing, validation in real‑life‑like settings; aim to make further technical improvements.
Projects we will not fund
Projects lacking originality, not addressing challenge areas, no impactful outputs, not battery‑focused, no positive economic/societal impact evidence, duplicating other UK/EU funded work, or covered by existing commercial agreements.
Timeline
- 28 Sep 2026 – Competition opens
- 1 Oct 2026 – Briefing event (2 pm) – slides downloadable after event
- 4 Nov 2026 11:00 am – Competition closes
- 30 Nov 2026 – Applicants notified
- 1 Jan 2027 – Project start by
Before you start
Agree to draft contract terms (non‑negotiable) available on application start; final contract includes milestones, binding when returned and signed. Create account as lead applicant or sign in; track progress; collect information; represent organisation if successful; invite colleagues.
What happens next
Assessors review and score; outcome and feedback notified; contracts issued to successful applicants.
What we will ask you
Application split into:
- Project details.
- Application questions.
- Finances. Read guidance on applying for a competition on the Innovation Funding Service before starting. Before submitting, lead applicant must ensure:
- All information correct.
- Proposal meets eligibility and scope.
- All sections marked complete. You may reopen and resubmit before deadline.
Accessibility and Inclusion (repeat)
Same as earlier: welcome all backgrounds; reasonable adjustments; contact via email or 0300 321 4357; recommend contacting ≥15 working days before deadline.
Project details (background, not scored)
- Provide project title, start date, duration.
- Who made you aware of competition? (single category).
- Organisation establishment length.
- Primary focus area.
- Project and scope summary (≤800 words).
- Public description (≤400 words, publishable, no commercially sensitive info).
- Applicant location (text cut off).