Oxford, UK, 10 August 2026 – YASA, the world-leading pioneer of axial flux electric motor technology, has secured UK Government grant funding to design and develop a new generation of fully rare-earth-free and heavy-rare-earth-free axial flux electric motors.
As part of the programme, YASA will lead Project Resilience in investigating two complementary technology pathways designed to reduce reliance on rare-earth magnet materials while preserving the power density, efficiency and compact packaging required by future electrified vehicles.
The growing challenge of rare-earth supply chains
Rare-earth permanent magnets are widely used in high-performance electric motors, but their supply chains are highly concentrated geographically. This growing dependency can expose automotive manufacturers and suppliers to geopolitical uncertainty, export restrictions, price volatility and potential disruption as global demand for electric motors continues to increase.
Heavy rare earths are commonly used to help permanent magnets withstand the high temperatures and demanding operating conditions experienced within powerful electric motors. However, these materials can be particularly difficult and carbon-intensive to extract and process.
At its core, Project Resilience will develop two complementary technology pathways designed to give vehicle manufacturers greater flexibility in selecting the most appropriate electric motor architecture for different applications.
For high-performance battery-electric and hybrid vehicles, YASA will investigate heavy-rare-earth-free permanent-magnet motor designs intended to maintain high levels of power density without increasing motor mass or package size.
In parallel, the company will also develop fully rare-earth-free axial flux technology for vehicle applications with different performance, cost and manufacturing requirements.
The two development routes will be built around common YASA stator technology, creating the potential for a modular electric motor architecture in which different rotor technologies can be selected according to the specific requirements of each vehicle programme.
This approach will enable YASA to broaden the range of applications addressed by its renowned axial flux technology while sharing engineering, design, development and manufacturing knowledge across both pathways.
Tom Hillman, Head of Motor Simulation, YASA, said: “Rare-earth materials have played an important role in the development of powerful and compact electric motors, but the automotive industry must now prepare for a future in which availability, environmental impact and security of supply are increasingly important considerations.
“Project Resilience is about creating credible alternatives without losing sight of what vehicle manufacturers need from an electric motor. Different applications require different balances of performance, efficiency, packaging, cost and production volume, which is why we are developing two complementary technology routes rather than pursuing a single universal solution.
“Our axial flux architecture provides an exciting platform from which to explore these next-generation technologies. The aim is to help build a more sustainable and secure future for electric propulsion, while continuing to deliver the exceptional power density that defines YASA technology.”
Ian Constance, Chief Executive at the Advanced Propulsion Centre UK, said: “The projects announced today demonstrate the depth of innovation and engineering excellence that exists across the UK automotive sector. Through DRIVE35, we are supporting businesses to move promising technologies to commercial deployment and manufacturing at scale.
“This investment is about far more than individual projects. It is about strengthening the UK's capability to design, develop and build the technologies that will define the vehicles of the future. By bringing together industry, government and academia, DRIVE35 is helping create the conditions for long-term growth, increasing investor confidence and reinforcing the UK's position as one of the world's leading destinations for automotive innovation."
Delivered by the Department for Business, Innovation, Science and Trade in partnership with the Advanced Propulsion Centre UK and Innovate UK, the DRIVE35 programme is part of the UK Government’s Advanced Manufacturing Sector Plan, which outlines its commitment to a zero-emission future, with an unprecedented £4 billion of grant funding available to 2035 for automotive R&D, scale-up and transformation.
ENDS
About YASA
YASA, a wholly owned subsidiary of Mercedes-Benz Group since 2021, is redefining the future of Electric Vehicle performance. YASA design and manufacture high-performance electric motors and power electronics for the premium automotive industry, employing over 300 people across sites in Oxford, Bicester and Welshpool. YASA’s revolutionary axial-flux electric powertrain technology brings the highest power/torque densities in class for the smallest size and weight.
About APC
The Advanced Propulsion Centre UK (APC) collaborates with the UK government, the automotive industry, and academia to facilitate driving research and investment in zero-emission vehicle manufacturing. Established in 2013 and jointly funded by the Department for Business and Trade (DBT) and the automotive industry, the APC accelerates the development and industrialisation of technologies that enable the transition to zero-emission vehicle manufacturing and a net-zero automotive supply chain in the UK.
Launched in July 2025 and delivered by DBT in partnership with the APC and Innovate UK, the DRIVE35 (Driving Research & Investment in Vehicle Electrification) programme forms a core part of the UK Government’s Advanced Manufacturing Sector Plan. It underpins the UK’s commitment to a zero-emission future, backed by £4 billion in grant funding to 2035 for automotive R&D, scale-up, and transformation.
Through DRIVE35, the APC has facilitated funding for 101 zero-emission projects involving 201 partners, strengthening the UK’s long-term automotive capability through collaboration, knowledge-sharing, and innovation. Focus across three funding pillars - Innovation, Scale-up, and Transformation - is helping to build a globally competitive zero-emission vehicle supply chain and deliver safer, smarter, more sustainable, and affordable mobility.
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