Mercedes-AMG High Performance Powertrains is leading a UK-Germany electric vehicle technology project that will create over 150 jobs across Northamptonshire and Oxfordshire while developing ultra-compact electric drive systems for high-performance vehicles
Mercedes-AMG High Performance Powertrains is leading a cutting-edge EV technology project that will create over 150 high-value jobs across Northamptonshire and Oxfordshire in the UK while securing 34 existing roles. The initiative, announced during German President Frank-Walter Steinmeier’s state visit to the UK, demonstrates the strengthening economic partnership between the two nations following the Kensington Treaty signed in July.
The UK government is backing the Ignited project with £10 million through the Advanced Propulsion Centre as part of £20 million in total project funding. The initiative will develop an ultra-compact, high-power electric drive system for high-performance EVs, with production expected within three years. UK partners include Yasa Ltd and DePe Gear Company Ltd.
“Yasa is proud to contribute to this UK-Germany collaboration, which represents an important milestone for the future of high-performance electric drive technology,” said Tim Woolmer, Founder and CTO of Yasa. “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.”
The project aims to strengthen UK EV supply chains and reinforce Britain’s position as a global hub for automotive innovation, supporting the government’s modern Industrial Strategy. The announcement builds on an economic relationship worth £150 billion in goods and services flowing between the UK and Germany, supporting over one million jobs.
The investment follows the Chancellor’s recent announcement of an additional £1.5 billion for Drive35, bringing total investment in the program to £4 billion in capital and research and development funding until 2035. This represents the largest UK government investment in automotive history and will electrify manufacturing hotspots nationwide while strengthening supply chains across communities.
The timing coincides with progress on NeuConnect, the £2.4 billion UK-German energy link, where 130 kilometers of cables have been installed in UK waters, creating an energy connection between Europe’s two largest energy markets.
