Yes to Yasa: Mercedes Buys UK EV Start-up Yasa​

By Curtley Bale​
The Story
Carmaker Mercedes has bought UK electric motor start-up company, Yasa. The company, an innovation within the University of Oxford becoming its own brand, manufactures electric motors at a reduced motor size but with a substantial mileage capacity. The deal signals Mercedes’s first meaningful step towards electrifying its fleet, and moving away from the combustion engine. Yasa was valued at £100 million during its last funding round in 2019 (Financial Times).

What It Means For Businesses and Law Firms
This deal helps Mercedes in its ambition to sell only battery-powered cars by the end of the decade. This is a significant shift from its current production model; only 2% of its sales last year were electric (Financial Times). The acquisition of Yasa comes as Mercedes’ parent company, Daimler, reassesses its plans to ‘greenify’ its production, after heavy criticism in the past.

Previously, Daimler refused to give an end date for its last combustion engine car, explaining that the fleet would not be electrified until 2039 due to its profit margins in combustion engine car sales. However, last week’s announcement by the EU regarding climate change commitments aims to effectively ban all sales of non-electric cars from 2035, throwing the car market into disarray. Mercedes’ acquisition of Yasa - signalling its revitalised commitments to electrification - suggests that it is taking the EU pledges seriously, by taking steps to meet the goals.

Yasa produces batteries for supercars - replicating the same level of power and torque as combustion engines - but without the harmful side effects (Yasa). The company has 250 employees based in Oxford, and will continue to operate from this site once the deal completes. The start-up already provides batteries for supercar companies such as Ferrari, and will continue working with other brands.

As a starting point, Yasa's battery technology will be installed into the AMG line of Mercedes cars. The technology seeks to emulate the traditional sporty style that combustion engines epitomise, but that electric cars have yet to replicate.

This deal will allow Mercedes to remain competitive with brands across the world as carmakers turn their attention to electric vehicles; Ford is planning to become all-electric by 2025, whilst JLR is aiming for 2030 (BBC Top Gear). The acquisition of Yasa will prevent Mercedes starting from scratch in the electrification race, possibly enabling it to move away from combustion engines more quickly than previously anticipated.