Mahle Powertrain has achieved a major milestone in Project Cavendish, successfully converting a 13-liter heavy-duty engine to run purely on hydrogen. The converted engine has matched the maximum torque of the diesel baseline engine, and measured engine-out NOX suggests that emissions can be readily maintained below 0.2g/kWh across the entire engine operating map using existing aftertreatment technology.

Launched in early 2023, Project Cavendish is a £9.8m (US$13.2m) program supported by the Advanced Propulsion Centre UK (APC) to develop end-to-end hydrogen powertrain capability for heavy-duty applications and enable the UK’s transition to net zero transportation. As part of the project, Mahle Powertrain has upgraded its testing infrastructure in Northampton for hydrogen operation.

“This milestone demonstrates that hydrogen combustion has a place as a clean fuel in the heavy-duty market,” said Jonathan Hall, head of research and advanced engineering at Mahle Powertrain. “Achieving the target torque and low raw engine-out emissions from a hydrogen-fueled 13-liter heavy-duty engine represents a significant step forward, both for Mahle Powertrain and for the wider industry, as we move toward practical hydrogen combustion solutions for heavy-duty applications.”

Achieving target torque is just the first step, says Mahle; the bigger challenge in hydrogen combustion is controlling NOX emissions. The measured raw engine-out emissions of its converted engine are very low and the addition of a simple selective catalytic reduction (SCR) aftertreatment system will enable the tailpipe emissions to be significantly less than EU VII limits. The measured particulate emissions were negligible and readily manageable using existing particulate filter technology. The results demonstrate that hydrogen combustion engines offer a practical, fast-to-market pathway toward zero-carbon heavy-duty transportation.

Project Cavendish also aims to facilitate wider hydrogen adoption by creating opportunities for external partners to undertake hydrogen engine testing at Mahle Powertrain’s facility in Northampton. The site serves as a center of excellence for the design, development, calibration and testing of all aspects of hydrogen and renewable-fuel powertrain engineering. Mahle Powertrain has reported growing interest from new customers and expects commercialization of its hydrogen and renewable fuels infrastructure to expand significantly over the coming year.

The project brings together expertise from Mahle Powertrain, Phinia, BorgWarner, Cambustion, Hartridge and Oxford Brookes University to deliver the next generation of hydrogen combustion technology.

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General Motors has announced plans to invest more than US$150m in its Saginaw Metal Casting Operations (SMCO) to support the production of the sixth generation of its V-8 engine blocks and heads used in full-size pickup trucks.

This commitment builds on the approximately US$5.5bn in investments GM made in 2025. In January 2023, the company announced a half-billion-dollar investment in its Flint Engine plant for production of the sixth generation of V-8 engines. The investment in SMCO, which includes includes new equipment and tooling, will support this work.

“This significant investment of over US$150m is a clear commitment to the plant and our people,” said John Lancaster, plant director, GM. “By enabling the production of next-generation engine blocks and cylinder heads for full-size trucks, the plant is well-positioned for the future. This not only secures existing jobs but also strengthens the local economy and ensures the plant continues to be an integral part of the automotive supply chain.”

SMCO will continue to produce the fifth generation of GM’s V-8 engine blocks while the plant prepares for the next generation’s production start in 2027.

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Valeo has inaugurated a manufacturing line for electric powertrain systems at its Pune, India, plant. The company has been selected by Mahindra to provide the electric powertrain of its latest Born Electric platform.

The Pune facility features advanced manufacturing capabilities to produce the  3-in-1 e-Axle integrating the motor, its inverter and reducer into a compact and efficient system that will equip the latest models. The integrated 3-in-1 eAxle leverages the latest iteration of Valeo’s motor technology.

Xavier Dupont, Valeo Power CEO, said, “India is a key region in Valeo’s Elevate 2028 strategic plan. Our investments in Pune support our commitment to deeper localization of advanced technologies in India. By localizing the production of our highly integrated 3-in-1 e-Axle systems, we are strengthening our ability to deliver advanced technologies to our customers and contributing to India’s transition toward safer and more sustainable mobility.”

Located at Valeo’s Pune plant in Lonikand, the facility is equipped with advanced manufacturing capabilities. It includes automated manufacturing lines for U-pin or hairpin winding stator assembly, reducer assembly, inverter manufacturing and final e-Axle assembly. These lines incorporate advanced automation, precision assembly processes and rigorous quality control systems, supported by full digitalization and end-to-end traceability.

Jayakumar G, president of Valeo India, added, “The inauguration of this line marks an important milestone in Valeo’s journey in India. Our new e-Axle manufacturing line in Pune is a key step in our growth strategy. It reflects our commitment to bringing advanced technology solutions closer to our customers. We are proud to develop and manufacture this e-Axle for Mahindra’s Born Electric vehicles and to contribute to the growth of India’s EV ecosystem.”

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The company-wide kAIros AI initiative aims to improve efficiency in support of the company’s ambitions to reduce time-to-market by nearly 50%, cut low-value process work by 40% and increase design cycle efficiency by 25%. Supported by Nvidia, Google Cloud and Deloitte, kAIros is intended to enhance how the company designs, engineers, manufactures and operates across its business.

kAIros is part of Horse Powertrain‘s wider strategy to strengthen the competitiveness of advanced manufacturing in Europe through the use of AI in development, simulation and industrial operations. By combining advanced supercomputing with cloud platforms, the company aims to provide the computing power, security and scalability needed to support these activities and enhance its long-term innovation capabilities.

AI Factory to support industrial AI applications 

At the heart of kAIros is the Horse Powertrain AI Factory, supporting AI use cases across engineering and production, including model training, simulation and digital twins, with the aim of accelerating industrial innovation and real-world deployment. A key part of the concept is the generation of training data to help continuously improve models and digital twins over time.

These capabilities enable the company to run advanced simulations and optimize operations in real time across products, factories, warehouses and logistics, with Google Gemini Enterprise used to deploy AI agents across the business, helping reduce coordination tasks that add limited value.

kAIros also supports physical AI by linking real-world operations with virtual systems in real time. This enables systems to interpret their environment, support autonomous decision-making, and interact with cobots, automated guided vehicles and smart machines. Applications include automated video-based quality inspection, faster product simulation and robotics for process optimization.

A dedicated Center of Excellence will lead the development of internal AI capabilities, bringing together cross-functional teams to build applications and scale expertise across the organization. Alongside this, the AI Factory will support scenario simulation, algorithm optimization and the development of intelligent propulsion solutions to improve efficiency and predictive performance. The initiative also aims to build long-term industrial AI capability to support advanced manufacturing in Europe.

Patrice Haettel, COO of Horse Powertrain and chief executive officer of Horse Technologies, said, “Industry advances at moments when technology doesn’t just follow change – it drives it. With kAIros, we are taking a decisive step into a new era where AI can redefine speed, cost, efficiency and sustainability.

“Our goal is to turn data into knowledge, simulations into real value, and innovation into competitive advantage. Horse Powertrain aims to be more agile and reliable because we understand that AI is not just a tool and kAIros is among the first AI factories in Europe for the automotive industry.”

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Škoda has inaugurated a new 55,000m² battery systems assembly hall at its plant in Mladá Boleslav in the Czech Republic, investing €205m (US$237.5m) to expand production. The facility makes Škoda the largest producer of BEV battery systems within the Volkswagen Group and the first Volkswagen Group site in Europe to manufacture cell-to-pack battery systems for high-volume electric vehicles. With a daily output of over 1,100 battery systems and annual capacity of up to 335,000 units, the site is expected to accelerate technology rollout in collaboration with the Volkswagen Group Technology Center of Excellence – Battery.

“With this investment, Škoda becomes the largest producer of BEV battery systems within the Volkswagen Group and a central pillar of our electrification strategy. The plant in Mladá Boleslav operates at true industrial scale and reinforces the European battery value chain. Škoda’s expertise, efficiency and unique spirit make it a key driver of our brand group core transformation,” said Thomas Schäfer, the Volkswagen Brand CEO.

By fully insourcing the cell-to-pack process, using standardized cells and adopting LFP chemistry, Škoda says it has reduced battery costs by around 30% compared with current MEB platform batteries. The production hall operates with a 60-second cycle time, 84% automation and 131 robots, and also functions as a competence center, covering the full process from cell handling to final assembly.

“This marks a major milestone for Škoda Auto and our commitment to decarbonizing the entire value chain,” added Klaus Zellmer, CEO of Škoda Auto. “Reducing emissions goes far beyond the vehicle itself – it includes sourcing, production and energy use. With the opening of our new battery system assembly line, we are localizing battery production at scale, strengthening a more resilient and competitive European value chain, and making electric mobility more accessible. As part of the Brand Group Core, we are proud to contribute our industrial strength and expertise to a powerful alliance of volume brands shaping the future of sustainable mobility.

“We are grateful to the Volkswagen Group for the trust placed in us to deliver up to 335,000 battery systems annually for electrified drivetrains across the group. At the same time, we are doubling our Škoda BEV portfolio and transitioning our sites to greener energy, including converting our central power plant from coal to biomass, which will reduce emissions by around 274,000 metric tons of C02 by 2027. By building expertise in high-volume battery production and accelerating electrification, we are taking responsibility, contributing to a sustainable future for Škoda Auto, the Czech Republic and Europe as a whole.”

In related news, CamMotive opens high-current battery testing facility in Cambridge

E-powertrain development consultancy CamMotive has opened an 800V channel battery testing lab in Cambridge in the UK. The facility features a high-capacity test cell capable of cycling hundreds of large-format cells under controlled conditions, delivering up to 800A per cell for rigorous performance evaluation. One of the few UK labs with this capacity, it aims to accelerate battery development by helping OEMs improve compliance, range, lifespan and charging efficiency.

The lab’s high-current capability is designed to test large automotive cells and other high-power, high-capacity battery technologies, including those used in eVTOLs, data centers and stationary battery energy storage systems (BESS). Its extensive channel count is useful to companies with high-volume testing requirements, enabling hundreds of cells to be tested simultaneously under varying conditions. High-precision cyclers and advanced EIS tests also enable accurate long-term analysis and performance characterization, including cell ageing and end-of-life simulation, with modeling and calibration expertise provided by CamMotive’s specialist engineers.

The facility offers additional technical capability and services, including dynamic climatic chambers to replicate varying temperature conditions, and process thermostats for real-world thermal management testing. For high-power module and pack testing, the lab provides capability up to 1MW.

The primary purpose of the new laboratory is to support automotive OEMs and accelerate development timelines by gathering data for modeling, compliance and improved understanding, leading to enhanced performance, longer useful life and faster charging strategies.

In addition to the main facility, the laboratory also houses several lower current cyclers for testing of smaller capacity cells. In this way, the company aims to support innovation in battery technology, including startups working on the latest chemistries and organizations exploring battery options for new applications.

Bruce Campbell, director at CamMotive, said, “The launch of our new test facility marks the latest phase of CamMotive’s commitment to advancing battery technology and its applications. We provide solutions across the entire battery ecosystem, from early concept to end-of-line validation.

“Working with UK cell developers and digital modelers, manufacturers and integrators, we combine world-class testing infrastructure with decades of powertrain expertise to help our partners deliver sustainable solutions for road, air, sea transportation and stationary applications.”

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Horse Powertrain has invested €45m (US$53m) to expand cylinder head casting processes at its plant in Valladolid, Spain.

The aluminum casting facility will be the first in Spain to cast cylinder heads using the innovative tilting gravity die casting (TGDC) process. Compared to traditional high-pressure die casting methods, the TGDC process enhances the structural integrity of the finished components, essential for high-efficiency hybrid engines.

When this investment comes online, Valladolid’s annual production capacity for cylinder heads will rise from 300,000 to 360,000 – a 20% increase.

Beyond the technological improvements, the facility will enable Horse Powertrain, through its Horse Technologies division, to further internalize component production, enhancing the business’s autonomy and further improving quality control at the Valladolid plant.

Patrice Haettel, COO of Horse Powertrain and CEO of Horse Technologies, said, “This new facility not only introduces a new process to Spain, but also further demonstrates Valladolid’s leadership as a world-class automotive plant.

“By adding this innovative technology to our capabilities, we are growing our production capacity and increasing our flexibility as a business.

“This milestone is the direct result of the talent and commitment of our team, as well as the support of regional institutions that continue to invest in the industrial future of Castilla y León.”

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BidItUp, an industrial asset auctioneer and industrial disposition partner, has announced an eight-day online and live virtual auction featuring the manufacturing and R&D assets of Xalt Energy, a US- based lithium-ion battery manufacturer serving electric vehicle (EV) and energy storage system (ESS) markets.

The eight-day event includes assets from Xalt Energy’s 400,000ft² manufacturing campus in Midland, Michigan, as well as its R&D and prototype operations in Auburn Hills, encompassing the full lifecycle of lithium-ion battery development, from pilot and testing through high-volume production.

Spanning both facilities, the offering provides access to late-model, production-proven battery manufacturing, automation and laboratory systems – many available under power – allowing buyers to reduce lead times, capital investment and supply chain constraints associated with new equipment.

Assets include automated lithium-ion production assets from Tesla Manz, a ThyssenKrupp battery production line (under power), Bühler and Hitachi slurry mixing systems, G&G Lamistar coating lines, Kokam stacking equipment, more than 40 industrial robots from FANUC, ABB and Kuka, extensive environmental testing chambers, battery cyclers, power and rectifier systems, and complete plant and facility infrastructure.

“This auction represents a unique convergence of scale, sophistication and immediacy,” said Tara Shaikh, CEO of BidItUp. “These are highly engineered systems that supported real-world battery production. For manufacturers, integrators and technology-driven buyers, this offering provides a faster, more capital-efficient path to deploy or expand lithium-ion manufacturing capabilities.”

In related news, Xtrac boosts transmission systems production with £1m machining investment

Xtrac has announced a £1m (US$1.35m) investment in new machining technology at its Thatcham HQ in the UK. Recently installed, and starting production in January 2026, are three key pieces of equipment: a Sodick electrical discharge machining (EDM) machine; a CMG Mori-Seiki computer numerical control (CNC) turning center; and a Behringer high-performance band saw. These investments will improve Xtrac’s ability to deliver high-precision gearing solutions, the transmission specialist says.

Wire cutting

Xtrac has expanded its EDM capabilities with the new Sodick ALC 600P wire EDM machine. Featuring Sodick’s latest generator and full CE-certified safety compliance, the machine delivers high performance, quality and precision, enabling highly accurate and repeatable cutting of internal splines.

Commenting on the investment in EDM technology, Xtrac CEO Adrian Moore said, “This machine will primarily be utilised to deliver to the very highest quality required for Xtrac’s gears and splined components used in Formula One engines and gearboxes. It will also be used to manufacture gears used in top level professional motorsport series around the world such as the all-electric racing Formula E, as well as for hybrid transmission components used in global Sportscar racing such as the Le Mans 24 Hour race.”

Sustainable CNC turning capability

Fully commissioned in December 2025, the DMG Mori-Seiki NLX 2500/700 is an energy-efficient, automated CNC turning center. Equipped with automated bar feed, robotic unloading, Y-axis capability, dual spindles and a digital tailstock, it supports integrated turning and milling for high-productivity machining of complex automotive components.

At Xtrac, the machine has been commissioned to turn and mill multiple types of part families of internal gearbox components for motorsport and high-performance automotive applications. It is also able to operate in lights-out mode for larger volumes, adding considerable extra capacity to Xtrac’s existing turning and milling capability. The DMG Mori-Seiki center will enable rapid production of components prior to in-house gear cutting, heat treatment and grinding processes.

Production flexibility

To further increase essential production flexibility, the latest technology Behringer high-performance HBE Performance Series band saw has also been installed in the 5000ft2  (465m2) metal preparation area of Xtrac’s Thatcham plant. Operating in conjunction with the existing Behringer equipment, this investment aims to reduce the time spent in metal preparation. The flexible configuration will ensure that raw material of different bar sizes can be rapidly swapped over, resulting in reduced time from customer project launch to first machining commencing.

Inspection and upgrades 

Alongside acquiring the three new machines, Xtrac continues to invest in upgrading its existing equipment to leverage advancements in gear design, manufacturing technology and software.

In December 2025, the Klingelnberg P40 gear inspection machine was upgraded to deploy the Swiss/German specialist’s latest closed-loop bevel manufacture process and technology suite. Moore said, “This enhancement enables the manufacturing and inspection of gears to dimensional accuracies only recently available. It also improves machine functionality and gives us the ability to unlock vital performance improvements within our gear designs.”

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SEAT and Cupra have opened a new battery system assembly plant at the Martorell factory, establishing Spain as a key hub for electromobility in Europe. The facility is part of Volkswagen Group’s battery strategy, combining in-house and third-party cell supply to ensure flexibility, innovation and secure access to technologies and supply chains.

With the launch of these facilities, the Volkswagen Group companies are advancing their electrification plans for the series production of the Cupra Raval and Volkswagen ID Polo, which will start in 2026. The companies also lead the Electric Urban Car Family project for the Volkswagen Group’s Brand Group Core, which includes four fully electric models from three brands, all to be manufactured in Spain.

“The opening of this battery system assembly plant is a turning point in the history of Seat and Cupra. Today (December 12, 2025), we see how our ambition becomes a reality: we are ready to produce 100% electric Made in Spain cars that will make electric mobility accessible across Europe,” said Markus Haupt, CEO of SEAT and Cupra.

“Martorell is now the epicenter of the mobility of the future. We are proud to be leading the Electric Urban Car project for the Brand Group Core of the Volkswagen Group and to produce two of the models that will change the rules of the game in electrification, starting with the Cupra Raval.”

“Four years ago, we made a historic investment to establish Spain as a key location and European benchmark for electromobility. Today, with the opening of this battery system assembly plant in Martorell, we are beginning a new chapter for the Volkswagen Group, for Spain and for Europe,” said Thomas Schäfer, chair of the SEAt and Cupra supervisory board, member of the board of management of Volkswagen Group (Brand Group Core) and CEO Volkswagen Brand.

“This project has been made possible thanks to the collaboration between the brands of the Brand Group Core and the Center of Excellence Battery at Volkswagen Group Technology. It demonstrates that, by working together, we can lead the way toward an electric future in Europe.”

The battery system assembly plant

The €300m (US$352m) battery system assembly plant at Martorell, Spain, covers 64,000m², can produce 1,200 battery systems per day and will supply the Cupra Raval and Volkswagen ID. Polo from 2026. The facility includes 11,000 solar panels and a large water collection system to improve efficiency and reduce its carbon footprint.

Günther Mendl, head of the group’s Center of Excellence Battery, said,  “Right now we are moving from the passenger seat to the driver’s seat in the core technology of the electric world. The MEB+ battery system assembled at Martorell is fully competitive in all major aspects and a clear leap ahead as we introduce the unified cell, which is not just another battery cell but our global technology platform allowing unprecedented speed, scale and flexibility across brands, regions and segments.

“At the same time, we switch to compact cell-to-pack design and add lithium-iron phosphate as alternative cell chemistry. As we contribute to building the long-needed battery industry in Europe, we achieve less dependency and more grip on tech innovation and cost, making e-mobility still more attractive and affordable.”

The battery assembly plant completes the transformation of Martorell to be “the epicentre of the mobility of the future”, the companies said. Part of a €10bn (US$11.73bn) investment in Spain, including €3bn (US$3.52bn) for electrification. The factory produces electric, hybrid and combustion models, and is targeting a manufacturing capacity of up to 600,000 vehicles per year, including 300,000 electric vehicles, and is the Volkswagen Group’s third-largest plant in Europe.

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