A £20m (US$26.7m) joint electric vehicle technology project between the UK and Germany has been announced. The cutting-edge project will be led by Mercedes-Benz and based on its F1 car power unit technology, and has secured £10m (US$13m) in UK government backing.
The project will be led by Mercedes-AMG High Performance Powertrains – renowned for the power units used in Formula 1 cars – and will create over 150 new, high valued jobs while securing another 34 existing roles.
It aims to strengthen the UK’s EV supply chains and reinforce its position as a global hub for automotive innovation, delivering on a central aim of the government’s modern Industrial Strategy.
The announcement builds on an economic relationship between the UK’s largest trading partner in Europe, with £150bn (US$200bn) worth of goods and services flowing between the two countries, supporting more than one million jobs.
Prime Minister Keir Starmer said, “I am delighted to welcome President Steinmeier to the UK as we continue to strengthen the ties between our two great nations. This investment by Mercedes shows the real benefits of that partnership: cutting-edge innovation, more jobs, and a stronger economy for Britain. By working together with likeminded leaders and countries, this government is delivering on the public’s priorities and cutting the cost of living for Brits back home.”
The government is backing the initiative with £10m through the Advanced Propulsion Centre – which targets funding to develop cutting-edge zero emission vehicle technologies – as part of £20m total project funding.
The IGNITED project will develop an ultra-compact, high-power electric drive system – similar to an engine – for high-performance EVs. UK partners include Yasa and DePe Gear Company, with production expected within three years.
Yasa founder and CTO Tim Woolmer said, “Yasa is proud to contribute to this UK-Germany collaboration, which represents an important milestone for the future of high-performance electric drive technology. Government support through the Advanced Propulsion Centre has been essential in enabling this next phase of R&D to remain in the UK, safeguarding specialist engineering roles and helping us accelerate breakthrough innovation alongside our partners at Mercedes-AMG. As we continue to scale our industry-leading axial-flux motor technology, projects like IGNITED strengthen the UK’s position as a global centre of excellence for advanced electric powertrain development.”
Business and trade secretary Peter Kyle added, “This investment demonstrates the strength of our partnership with Germany in driving innovation and creating good jobs across our communities. By keeping advanced manufacturing expertise here in the UK, we’re building the supply chains and skills that will power our auto industry for decades to come. With our modern Industrial Strategy we’re sending a clear message to the car sector that we have their back if they want to invest, as we deliver on our Plan for Change to create opportunities in every corner of the country.”
Chancellor of the exchequer Rachel Reeves commented, “Germany is a vital partner for the UK and as the two largest economies in Europe, there is so much we can do together to drive investment, better jobs and faster growth. That’s what I will tell the top German and British CEOs today at No 10 Downing Street – I am backing British business, and there’s no better place for German companies to invest, scale and stay than the UK.”
In related news, Infineon partners with Electreon to advance dynamic wireless EV charging technology