Over 150 high-value jobs are set to be created across Northamptonshire and Oxfordshire through a new UK-Germany electric vehicle (EV) technology project led by Mercedes-AMG High Performance Powertrains.
The initiative, backed by £10m from the UK Government, was announced as German President Frank-Walter Steinmeier began a three-day State Visit to the UK.
Building on the landmark Kensington Treaty signed in July, President Steinmeier joined Prime Minister Keir Starmer and the Chancellor of the Exchequer in hosting a roundtable with British and German business leaders at No10 Downing Street, highlighting the economic partnership between the two nations.
The cutting-edge project, known as IGNITED, will develop an ultra-compact, high-power electric drive system—akin to a Formula 1 car engine—for high-performance EVs. Mercedes’ investment will create over 150 new jobs while securing an additional 34 existing roles. UK partners in the project include YASA Ltd and DePe Gear Company Ltd, with production expected within three years.
The initiative aims to strengthen the UK’s EV supply chains and bolster Britain’s position as a global hub for automotive innovation, aligning with the Government’s modern Industrial Strategy.
Prime Minister Starmer welcomed the announcement, saying: “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 IGNITED project, which carries total funding of £20m, demonstrates the tangible benefits of closer UK-Germany collaboration, an economic relationship that already supports over one million jobs and facilitates £150bn worth of goods and services annually between the two nations.
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