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£20m Mercedes EV project for Northamptonshire and Oxfordshire

Investment in new UK-Germany electric vehicle technology project will create more than 150 high-value jobs in the two counties 

A cutting-edge project new led by Mercedes-AMG High Performance Powertrains will create more than 150 high-value jobs in Northamptonshire and Oxfordshire, while securing another 34 existing roles. 

black Mercedes-Benz vehicle

Photo by Samuele Errico Piccarini / Unsplash

The £20m IGNITED project aims to develop an ultra-compact, high-power electric drive system – akin to an engine – for high-performance EVs. Mercedes already has considerable form in this area, producing power units for racing cars used in Formula 1. 

UK partners involved in the new project include YASA Ltd and DePe Gear Company Ltd. The UK government is backing the initiative with £10m awarded through the Advanced Propulsion Centre, as part of its remit to support the development of zero emission vehicle technologies. 

Production is expected within the next three years. 

The hope is that the new initiative will strengthen the UK’s EV supply chains and reinforce its position as a global hub for automotive innovation. 

The announcement of the new project coincides with the start of a three-day state visit to the UK by German President Frank-Walter Steinmeier. It also follows the signing in July of the Kensington Treaty, bolstering the UK’s economic ties with Germany. 

Keir Starmer, Prime Minister, says: ‘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.’ 

Tim Woolmer, Founder and CTO of YASA, adds: ‘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.’ 

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Simon Guerrier
Writer and journalist for Infotec, Social Care Today and Air Quality News
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