Mercedes will create more than 150 jobs across Northamptonshire and Oxfordshire through a new UK Germany electric vehicle project, developed in partnership with German counterparts. The announcement coincides with the three day State Visit of German President Frank Walter Steinmeier. The Mercedes UK Germany electric vehicle project forms part of a wider industrial and diplomatic moment focused on cooperation between the two countries.
The IGNITED Project, led by Mercedes AMG High Performance Powertrains, will create more than 150 new roles and secure an additional 34 existing jobs. The company is known for producing power units used in Formula 1 cars. This new initiative will develop an ultra compact high power electric drive system for high performance electric vehicles, with similarities to a traditional engine. UK partners include YASA Ltd and DePe Gear Company Ltd. Production is expected within three years.
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.”
The government is supporting the Mercedes UK Germany electric vehicle project with ten million pounds through the Advanced Propulsion Centre. The total project funding amounts to twenty million pounds. The Centre distributes funding targeted at the development of zero emission vehicle technologies.
Tim Woolmer, founder and CTO of YASA, 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 stated that the investment highlights the strength of the UK relationship with Germany and its contribution to innovation and job creation. He said: “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.”
The announcement sits alongside wider government commitments. The Chancellor recently confirmed an additional one point five billion pounds for DRIVE35, increasing total investment in the programme to four billion pounds in capital and R&D funding until 2035. DRIVE35 will support the electrification of manufacturing hotspots and reinforce supply chains through investment in batteries, electric motors, hydrogen fuel cells and power electronics.
Chancellor Rachel Reeves said: “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.”
The Mercedes UK Germany electric vehicle project therefore reflects combined industrial strategy, cross border partnership and continued commitment to new automotive technologies.
