Mercedes-Benz taps Formula 1 technology to build ultra-fast electric cars in new £20m UK partnership
Mercedes-Benz will invest £10 million in a new UK programme to develop next-generation electric and hybrid power units, using technology born in Formula 1, in a move that will create 150 highly skilled jobs across Northamptonshire and Oxfordshire.
The German carmaker’s investment will be matched by a further £10 million from the UK government, forming a £20 million partnership with a cluster of specialist British engineering businesses to bring the high-power drive systems into production within the next three years.
The project will draw directly from the power-unit expertise of the Mercedes-AMG High Performance Powertrains division, the F1 engineering powerhouse behind Kimi Antonelli and George Russell’s race cars, based in the heart of Britain’s motorsport valley.
Confirming the project during the state visit of Germany’s president, Frank-Walter Steinmeier, the UK government said the collaboration signals a major boost for Britain’s advanced automotive sector.
Business secretary Peter Kyle said the deal underlined the strength of British–German industrial ties and would help secure the future of high-value manufacturing in the UK.
“This investment demonstrates the strength of our partnership with Germany in driving innovation and creating good jobs across our communities,” Kyle said. “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 new power units will target high-performance electric and hybrid vehicles — areas where carmakers are competing to combine zero-emission technology with the acceleration and driving dynamics typically associated with petrol engines.
Mercedes-Benz’s decision to base development in Britain underscores the country’s global position in automotive engineering and electrification research. The 150 roles created will support design, testing and low-volume manufacturing, with the ambition to scale to wider production if successful.
The announcement comes as premium carmakers intensify investment in electric performance technology to meet shifting market demand and tightening emissions rules, while also preserving the qualities that distinguish traditional sports and luxury brands.
