Date posted: 10th Apr 2026
This week marks an exciting milestone for the North East economy with the launch of the North East Supplier Readiness and Transformation (SRT) Scheme, a new grant programme designed to accelerate innovation, scale-up, and supply chain resilience within the region’s electric vehicle (EV) sector.
With a £50 million funding pot, the SRT Scheme will provide capital grants ranging from £250,000 to £3 million to support UK-registered businesses looking to invest, innovate, or pivot towards EV-related manufacturing and technology. The funding represents strong backing for the North East EV sector from both the North East Combined Authority and central government. The North East, alongside the West Midlands, has been selected as one of only two pilot regions, reflecting confidence in the region’s existing EV and automotive manufacturing capability.
The SRT Scheme focuses on strengthening all aspects of the automotive and EV supply chain. Eligible activities include expansion or inward investment into EV manufacturing, battery innovation and recycling, PEMD technologies, digital transformation, reuse and remanufacturing of EV components, and workforce and skills development.
Successful delivery of the scheme will enhance the competitiveness of the region’s EV supply chain and support the creation of significant numbers of new, well-paid jobs. Creating a pipeline of talent will be critical, and it is positive to see the scheme can support investment in skills infrastructure.
The SRT Scheme represents an opportunity for businesses across the North East to scale, innovate, and position themselves at the forefront of the UK’s EV future. With government appetite for grant funding declining, it is vital that organisations access the programme while funding is available. Applications open in April 2026, and all projects must be completed and grant funds claimed by March 2030.
The Clive Owen LLP Grants Advisory team that I lead has extensive experience securing funding for transformational investment projects, with over £350 million of grant support obtained for clients, including within the automotive sector. We can help businesses assess eligibility, develop applications, build financial cases, and maximise success.
For a free, no-obligation discussion, please get in touch with our Grants Advisory team.
FAQs: North East Supplier Readiness and Transformation (SRT) Scheme
1. What is the SRT Scheme? The SRT Scheme is a £50m capital grant programme supporting growth and innovation in the North East EV and automotive sectors.
2. How much funding is available? The grant scheme will offer grants of between £250,000 and £3 million per project. The maximum grant intervention rate is 50%. The minimum project expenditure is £500k.
3. Who can apply? Any UK‑registered business of any size planning on undertaking a project in the North East Combined Authority region.
4. Which geographic areas are covered? Projects must be delivered within the North East Combined Authority region. This covers Durham, Sunderland, Gateshead, South Tyneside, Newcastle, North Tyneside and Northumberland council areas.
5. When do applications open? Applications open in April 2026. Projects must be completed by March 2030.
6. What types of projects are eligible? The scheme can support investment in capital assets in the following areas:
- Growth or inward investment in EV manufacturing (passenger, commercial, off-road, micromobility, and military vehicles)
- 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 digital transformation
- Reuse, recycling, and remanufacturing of EV components
- Skills capital and workforce development
7. What types of capital expenditure are eligible for grant support from the SRT?
The following are examples of eligible capital expenditure that can be supported by the North East Supplier Readiness and Transformation (SRT) Scheme:
- Construction or expansion and kit-out of EV-specific manufacturing facilities
- Construction or expansion and kit-out of prototyping and/or test facilities
- Purchase and installation of machinery, tooling, or equipment
- Investment in digital infrastructure or automation systems
- Fit-out of commercial or industrial spaces (e.g. Cat B/C)
- Site development for supplier co-location or consolidation
- Shared infrastructure to support supply chain resilience and economies of scale; and
- Capitalisation or co-investment of skills infrastructure
8. Can I get help with an application to the SRT grant scheme?
Yes, the Clive Owen LLP grants advisory team has extensive experience in providing fully outsourced bid writing support to capital grant schemes, having secured over £350m of funding for clients. Contact our team Grants Advisory team, for a free, no obligation initial discussion.
