As the UK accelerates EV innovation, Mercedes’ new IGNITED Project highlights why global engineering talent, visa pathways and modern workforce planning are now critical for automotive growth.

Published: 22 January 2026
Author: Nikita Kanda

Mercedes-AMG is bringing Formula 1 power unit expertise to the electric vehicle market with a £20m UK-Germany project set to create over 150 jobs in Northamptonshire and Oxfordshire. Backed by Government funding and partners like YASA, the IGNITED Project will develop ultra-compact, high-performance EV drive systems, cementing the UK’s role as a global hub for advanced mobility.

From an immigration and workforce‑planning perspective, the project aligns closely with the UK’s Modern Industrial Strategy and the Government’s DRIVE35 electrification initiative. As the automotive sector transitions to high‑performance EV technologies, access to global engineering talent via streamlined visa pathways, sponsor licensing, and a more skills‑focused immigration system will be increasingly important to support growth. The IGNITED Project exemplifies the type of advanced manufacturing investment anticipated under the Industrial Strategy’s emphasis on talent, R&D and cross‑border collaboration.

Mercedes-AMG High Performance Powertrains has announced a major UK-Germany collaboration to accelerate electric vehicle innovation, creating more than 150 new jobs across Northamptonshire and Oxfordshire.

The IGNITED Project, unveiled during German President Frank-Walter Steinmeier’s visit to the UK, will develop an ultra-compact, high-power electric drive system for high-performance EVs inspired by Formula 1 power unit technology.

The initiative, backed by £10 million from the UK Government through the Advanced Propulsion Centre, forms part of £20 million total project funding. UK partners include YASA Ltd and DePe Gear Company Ltd, with production expected within three years. Alongside creating new roles, the project secures 34 existing specialist engineering positions.

Prime Minister Keir Starmer stated that the investment would bring several benefits such as “cutting-edge innovation, more jobs, and a stronger economy for Britain”, while Business Secretary Peter Kyle emphasised its role in building advanced manufacturing supply chains. Chancellor Rachel Reeves highlighted the strategic importance of UK-Germany cooperation, noting that the partnership aligns with the Government’s DRIVE35 programme, which commits £4 billion to electrification and R&D until 2035.

Employment considerations

As the IGNITED Project moves forward with recruitment and workforce expansion, automotive and mobility employers working on similar projects should be aware of several important developments in UK employment law and HR practice:

• unfair dismissal qualification period, newly hired employees will only need six months’ continuous service to claim unfair dismissal, reducing the previous two-year threshold. Employers should review probationary policies and dismissal procedures accordingly
• updated employment contracts and handbook policies, policies should reflect recent statutory changes, including flexible working rights from day one, family leave reforms, and clear clauses on confidentiality, IP protection, and restrictive covenants for technical roles
• health and safety obligations, advanced EV manufacturing involves high-voltage systems and specialist equipment. Employers must implement comprehensive training and risk assessments to meet regulatory standards
• pay and working time compliance, review pay structures against National Minimum Wage, Working Time Regulations, and overtime requirements, particularly for shift-based engineering roles
• training and skills development, align workforce planning with the Industrial Strategy’s focus on upskilling for EV technologies. Consider apprenticeships and technical training programmes supported by Government funding.

In addition, employers in the mobility and advanced manufacturing sector should be aware of the strengthened trade union rights under the Employment Rights Act 2025. Given the high level of union involvement in traditional automotive and mobility workforces, businesses will need to prepare for increased obligations around informing employees of their right to join a trade union, allowing union representatives easier access to the workplace, and supporting statutory information and consultation processes. These requirements will become increasingly relevant as EV‑related projects scale and engineering workforces grow, and employers should ensure their HR policies, engagement protocols and workplace access arrangements are updated accordingly.

These developments reflect a broader trend across the automotive sector; employment law and workforce planning now need to evolve to support the transition to electrification. There is a growing focus on making sure businesses have fair processes in place, stay compliant, and invest in developing the right skills. Employers who take a proactive approach and combine legal compliance with strong workforce planning and training will be in the best position to attract talent, reduce risk and make the most of the opportunities that this new phase of advanced mobility brings.

Immigration & skills considerations

The UK’s Modern Industrial Strategy released last year places significant emphasis on revitalising advanced manufacturing, accelerating the EV transition, and securing access to global talent particularly in specialist STEM and engineering roles critical to electrification. Workforce capability and talent mobility are central pillars of the strategy, with a renewed focus on simplifying visa routes and ensuring employers can access high‑skilled international expertise for EV, software, and digital‑manufacturing roles.

As the UK EV and mobility industry continues to expand, employers face growing pressure to access engineering talent that is often scarce domestically. Immigration frameworks are therefore a critical enabler of the Industrial Strategy, particularly through:

• Skilled Worker and Global Talent visas, which support recruitment of specialist engineers, software developers and EV powertrain experts.
• sponsor licensing and compliance, increasingly significant for advanced manufacturing employers building multi‑national teams.
• policy shifts towards higher‑skilled roles, aligning with the Government’s intention to attract top global talent while tightening lower‑skilled routes - changes reflected in recent immigration rule updates and anticipated reforms.
• cross‑border project mobility, which will be essential for UK‑Germany initiatives as engineering teams collaborate on R&D, testing, and scaling production.

These trends mirror the wider message emerging from the automotive sector: that immigration flexibility, workforce development and industrial policy must evolve together to meet electrification demands. Industry analysis has already underscored the need for simplified visa access, upskilling initiatives, and better integration between employers, training providers and policymakers.

Opportunities for Mobility Businesses

For mobility, EV and advanced manufacturing businesses, the IGNITED Project signals major opportunities in:

• strengthening global supply chains
• deepening UK‑EU engineering collaboration
• leveraging Government‑backed programmes to support recruitment and skills development
• using Skilled Worker and Global Talent pathways to secure specialist technical roles aligned with high‑value EV workstreams

With Government funding and long‑term commitments such as DRIVE35, businesses that prioritise strategic immigration planning, protect innovation, and ensure compliance with employment and immigration law will be well‑placed in the next phase of the UK’s EV transition.