£20m UK-German project aims to develop high-performance drivetrain
3 December 2025 
Image: Yasa
The UK government is contributing half of the cost of a £20m UK-German project to develop an ultra-compact, high-power electric drive system for high-performance EVs. The Ignited project, led by Mercedes-AMG High Performance Powertrains – which produces engines for Formula 1 cars – is expected to create more than 150 high-value jobs in Northamptonshire and Oxfordshire, while securing a further 34 existing roles.
UK partners in the project include the Oxfordshire-based electric motor developer Yasa, which is owned by Mercedes-Benz, and Stoke-on-Trent precision gear specialist, DePe Gear. Production of the new drive system is expected to start within three years.
The Government is backing the initiative with £10m through the UK’s Advanced Propulsion Centre, which provides funding to develop cutting-edge zero-emission vehicle technologies. The project is intended to 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.
According to Yasa’s founder and chief technology officer, Tim Woolmer, the project “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,” he adds, “projects like Ignited strengthen the UK’s position as a global centre of excellence for advanced electric powertrain development.”
“This investment demonstrates the strength of our partnership with Germany in driving innovation and creating good jobs across our communities,” says business and trade secretary, Peter Kyle. “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.”
The Government says the project demonstrates its commitment to the automotive sector. The Chancellor of the Exchequer recently announced an additional £1.5bn for the Drive35 programme, bringing the total capital and R&D funding for this programme to £4bn for the period to 2035 – the largest-ever UK Government investment in automotive history.
Drive 35, part of the modern Industrial Strategy, aims to electrify manufacturing hotspots nationwide, strengthening supply chains and securing jobs. The funding is supporting the electrification of vehicle plants alongside investment in batteries, electric motors, hydrogen fuel cells, and power electronics.
Yasa, which recently produced its 50,000th axial-flux motor, has also been demonstrating a prototype in-wheel drive based on a 12.7kg motor that can deliver 750kW of peak power and a continuous output of 350–400kW. In addition, Yasa has developed a matching 15kg inverter that can deliver 1.5MW of power – equivalent to a power density of 100kW/kg. Yasa says that the current state-of-the-art for such inverters is 50–70kW/kg.
The company adds that due to the in-wheel drive’s “incredible” regenerative performance, it could dramatically downsize, or even eliminate the need for, conventional braking systems on the rear axle of a vehicle. Eliminating components such as disc brakes and drive shafts could save up to 200kg and, by optimising the vehicle’s structure for in-wheel motors, the potential weight savings could amount to around 500kg.
