New funding to support technological innovation and strengthen the competitiveness of Italy’s automotive industry. The Ministry of Enterprises and Made in Italy (MIMIT) has allocated €631 million to companies operating in the automotive supply chain to finance industrial research and experimental development projects with significant technological impact.

The measure, established by a ministerial decree issued at the direction of Minister Adolfo Urso, falls under the Innovation Agreements programme and draws on funding allocated by the Automotive Decree of June 10, 2026.

“With these resources, we are supporting research, innovation and advanced technologies to strengthen the competitiveness of the automotive supply chain, helping companies develop new vehicles and components and transition towards strategic, research-intensive technologies, including those with potential dual-use applications,” Minister Urso stated.

Applications Open November 25

The online application portal will open at 10:00 a.m. on November 25, 2026. Interested companies will be able to submit their applications through the Sustainable Growth Fund’s online platform, managed by Mediocredito Centrale in cooperation with leading banking and scientific partners.

The initiative targets companies engaged in industrial and transport activities, including craft businesses, as well as research centres. Research organisations may also participate in joint projects as co-applicants, encouraging collaboration between industry and the scientific community.

A significant share of the funding will be reserved for southern Italy. Forty percent of the total allocation, equivalent to €252.4 million, will be earmarked for projects carried out entirely in the regions of Southern Italy: Abruzzo, Molise, Campania, Basilicata, Calabria, Puglia, Sardinia and Sicily.

Grants Covering Up to 50% of Industrial Research Costs

Financial support will primarily take the form of direct grants covering eligible project expenses. Funding may cover up to 50% of eligible industrial research costs and up to 25% of experimental development costs. Subsidised loans covering up to 20% of eligible expenses may also be available.

Additional incentives are available for projects involving collaboration between companies and research organisations. In these cases, direct grants may be increased by 10 percentage points for small and medium-sized enterprises (SMEs) and research organisations, and by 5 percentage points for large companies, subject to the maximum aid intensities established under EU regulations.

Eligible Projects Ranging from €5 Million to €40 Million

To qualify for funding, projects must have eligible costs ranging from €5 million to €40 million. The initiative aims to support substantial investments in research and development, encouraging the introduction of new technologies and the transformation of production processes across the automotive supply chain.

Eligible expenses include personnel costs related to research and development activities, the purchase of newly manufactured equipment and instruments, consultancy services, and the acquisition or licensing of patents, research results and know-how. General overheads and materials required to carry out the projects are also eligible on a flat-rate basis.

Ranking System if Applications Exceed Available Funding

If funding requests exceed the available budget, the Ministry will establish a ranking to determine which projects will receive financial support. Applications will be assessed using scores based on specific indicators of the applicant companies’ economic and financial soundness.

Through this new funding allocation, the Italian government aims to support research and development investments across the automotive supply chain, helping companies develop new vehicles and components while facilitating their transition towards advanced strategic technologies.

Applications can be submitted from November 25 through the Sustainable Growth Fund online portal 

Innovative technologies for the production and recycling of electric and hybrid vehicles, targeting the automotive, transport and industrial sectors, will be showcased at E-Tech Europe, taking place from 7 to 9 October 2026 at Bologna Exhibition Center as part of Urban Tech 2026 – The Urban Technology Show, the new event dedicated to e-mobility, traffic, commuting, security, telecommunications & data, and the environment.