Over 150 jobs will be created across Northamptonshire and Oxfordshire through a new UK-Germany electric vehicle technology project led by Mercedes.
It comes as the German President Frank-Walter Steinmeier begins his three-day State Visit to the UK today. Building on the landmark Kensington Treaty signed in July, the visit will bolster the UK’s economic ties with Germany, with President Steinmeier joining the Prime Minister and the Chancellor in hosting a roundtable with British and German business leaders at No10 this afternoon.
Mercedes’ investment demonstrates how closer partnership with Germany is already delivering jobs and growth across the UK.
The cutting-edge project led by Mercedes-AMG High Performance Powertrains – renowned for the power units used in Formula 1 cars – will create over 150 new, high valued jobs whilst securing another 34 existing roles.
It will strengthen the UK’s EV supply chains and reinforce Britain’s position as a global hub for automotive innovation, delivering on a central aim of the Government’s modern Industrial Strategy.
Today’s announcement builds on an economic relationship that is already one of the biggest and most successful in Europe, with £150 billion worth of goods and services flowing between the two counties every year, supporting more than one million jobs.
It comes just a week after the Budget, in which the Chancellor announced a package of pro-business measures for international partners, including a three-year stamp duty holiday for firms that list in the UK and a decision to maintain the UK’s rate of corporation tax, which is the lowest in the G7.
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 £10 million through the Advanced Propulsion Centre – which targets funding to develop cutting-edge zero emission vehicle technologies – as part of £20 million 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 Ltd and DePe Gear Company Ltd, with production expected within three years.
Business and Trade Secretary Peter Kyle 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.
“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 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.
“That’s what I will tell the top German and British CEOs today at No10 Downing Street – I am backing British business, and there’s no better place for German companies to invest, scale and stay than the UK.”
Tim Woolmer, Founder and CTO, 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.”
The project demonstrates the Government’s commitment to the automotive sector. The Chancellor recently announced an additional £1.5 billion for DRIVE35, bringing total investment in this ambitious programme to £4 billion in capital and R&D funding until 2035, the largest UK Government investment in automotive history.
Part of the modern Industrial Strategy, DRIVE35 will electrify manufacturing hotspots nationwide, strengthening supply chains and securing jobs across communities. The funding supports electrification of vehicle plants alongside investment in batteries, electric motors, hydrogen fuel cells, and power electronics.
The investment comes as work on NeuConnect, the £2.4 billion UK-German energy link, moves forward at pace. Some 130km of cables have been installed in UK waters, creating an ‘invisible energy highway’ between Europe’s two largest energy markets.
NeuConnect and Siemens Energy are employing staff from local areas on the Isle of Grain construction site in Kent. Local businesses benefiting include Aylesford-based Gallagher Group and Maidstone-based Now Construction, who are constructing the Converter Station and have invested in a new concrete batching plant.
Rochester’s Amped Electrical Solutions is providing electrical works, whilst Dartford-based NG Bailey is delivering building services.
