Mercedes AMG High Performance Powertrains

What Mercedes AMG High Performance Powertrains does

Mercedes AMG High Performance Powertrains (HPP) is a UK-based, wholly-owned subsidiary of Mercedes-Benz AG headquartered in Brixworth, Northamptonshire. The company is organized around two divisions. The F1 Engineering division designs, manufactures, tests, and races Formula 1 power units for the Mercedes-AMG PETRONAS F1 works team and customer teams (including McLaren and, from 2026, Alpine). The Advanced Technologies division transfers F1-derived engineering expertise into Mercedes-Benz road car programs such as the Mercedes-AMG ONE hypercar and the Mercedes-Benz Vision EQXX research vehicle, and co-develops lithium-metal solid-state battery technology with Factorial Energy (validated by a 1,205 km single-charge EQS real-world test in September 2025). HPP operates a state-of-the-art Technology Centre and has earned eight World Championship titles, providing the technical pedigree underlying its customer-team supply relationships.

The business model is anchored in long-dated, multi-year Formula 1 power unit and gearbox supply agreements with enterprise customers, complemented by parent-funded technology-transfer and advanced R&D programs flowing back into the Mercedes-Benz product roadmap. Additional revenue diversification efforts include engineering consulting for marine applications such as Westbrook Racing's E1 RaceBird electric powerboat and external funding support (e.g., Advanced Propulsion Centre UK, 2023-07-09). Pricing for F1 power units is privately negotiated and not publicly disclosed. The company employs 501–1,000 people and markets primarily through motorsport visibility, its corporate website, and LinkedIn. A current regulatory overhang stems from a 2026 FIA engine regulations complaint filed by Ferrari, Honda, and Audi over alleged compression-ratio exploitation, which the FIA is now addressing.

Name

Mercedes AMG High Performance Powertrains

Legal name

Mercedes AMG High Performance Powertrains Ltd

Website

https://mercedes-amg-hpp.com

Company type

Private

Founded year

1983

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Mercedes AMG High Performance Powertrains is a UK-based Mercedes-Benz subsidiary that designs, manufactures, tests, and races Formula 1 power units for the works team and customer teams, while transferring F1 engineering expertise into Mercedes-Benz road cars and solid-state battery programs with Factorial Energy.

Ownership category

akta.pro rank

Product category

Motorsport Powertrains

NAICS

Engine, Turbine, and Power Transmission Equipment Manufacturing (3336), Motor Vehicle Electrical and Electronic Equipment Manufacturing (336320)

SIC

Engines & Turbines (3510)

akta.pro primary industry

Hybrid Powertrain Integration Manufacturing (ICE-HEV/PHEV modules) (IMACAHAJ)

Keywords

• Formula 1 powertrains
• F1 power units
• High performance engines
• Automotive technology transfer
• Motorsport engineering services

Headquarters

HQ city

Brixworth

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Personnel, Technology or R&D, Operations, Infrastructure, Supply Chain

Revenue model

1. F1 Power Unit Supply: Supply of Formula 1 power units to works team (Mercedes-AMG PETRONAS F1 Team) and customer teams including McLaren F1, Alpine, and others. Revenue from engine supply agreements and technical partnerships.
2. Engine Supply Agreements: Multi-year power unit and gearbox supply agreement with Alpine F1 team effective from 2026 season. Alpine taking over Aston Martin's previous engine quota.
3. Advanced Technology Transfer: Transfer of F1 technologies and know-how into high performance automotive projects and products including Mercedes-AMG ONE and Mercedes-Benz Vision EQXX.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Mercedes AMG HPP designs, manufactures, tests, and races Formula 1 hybrid power units for the Mercedes-AMG PETRONAS F1 works team and customer teams. It also operates an Advanced Technologies Team that transfers F1-derived engineering into high-performance automotive projects such as the Mercedes-AMG ONE hypercar and the Mercedes-Benz Vision EQXX research vehicle.

Product overview

Mercedes AMG High Performance Powertrains (HPP) operates as a specialized Formula 1 power unit manufacturer and advanced technology engineering organization based in Brixworth, UK. The company has two core divisions: a championship-winning F1 Engineering division responsible for designing, manufacturing, testing, and racing Formula 1 power units for the Mercedes-AMG PETRONAS F1 Team and customer teams; and an Advanced Technologies Team that transfers F1-derived engineering expertise into high-performance automotive projects including the Mercedes-AMG ONE hypercar and Mercedes-Benz Vision EQXX research vehicle. HPP also collaborates on solid-state battery technology development with Factorial Energy and provides engineering consulting services such as the E1 RaceBird electric powerboat project.

Differentiator

Problem solved

Functional benefit

Products and services

• Formula 1 Power Units Design, manufacture, testing, and racing of Formula 1 hybrid power units supplied to the Mercedes-AMG PETRONAS F1 works team and customer Formula 1 teams, built around the championship-winning HPP engineering program.
• Advanced Technologies Team engagements Specialized engineering team that transfers F1 power unit, hybrid, and efficiency know-how into high-performance automotive products and projects, supporting both Mercedes-Benz road-car programs and select external partners.
• Mercedes-AMG ONE program support Engineering and technology transfer contribution from HPP to the Mercedes-AMG ONE road-legal hypercar, integrating Formula 1 power unit technology into a series-production road car.
• Mercedes-Benz Vision EQXX program support Engineering and technology transfer contribution from HPP to the Mercedes-Benz Vision EQXX research vehicle, applying F1 engineering principles to demonstrate ultra-efficient electric vehicle technology.
• Solid-State Battery Technology (with Factorial Energy) Lithium-metal solid-state battery technology co-developed with Factorial Energy, validated in an EQS prototype that achieved a 1,205 km real-world single-charge test, with HPP contributing engineering expertise to support series production by end of decade.
• Alpine F1 Power Unit and Gearbox Supply Multi-year Formula 1 power unit and gearbox supply agreement with the Alpine F1 Team from the 2026 season onwards, under the HPP customer team supply program.
• E1 RaceBird Powertrain Engineering Support Engineering consulting and application of Formula One engineering principles to the E1 RaceBird electric powerboat, supporting Westbrook Racing's marine racing powertrain program.

Quantifiable outcome

• 25% more driving range with solid-state battery technology compared to standard EQS battery of equivalent weight and size
• +2 more outcomes

Named customers3 records

Segments2 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Five partnerships are on record, tiered core and minor.

• Alpine F1 TeamcoreTechnology or Integration · 12 November 2024Alpine has confirmed a multi-year power unit and gearbox supply agreement with Mercedes-AMG High Performance Powertrains effective from the 2026 Formula 1 season. The deal involves Alpine taking over Aston Martin's previous engine quota as Aston transitions to Honda hardware.
• Factorial EnergycoreStrategic or Co-development Partner · 1 January 2021Mercedes-Benz and Factorial Energy partnership for solid-state battery development. The collaboration aims to bring solid-state battery technology to series production by end of decade. Factorial delivered first lithium-metal solid-state battery B sample cells in summer 2024. Technology delivers up to 25% more range.
• McLaren F1coreTechnology or IntegrationMcLaren F1 uses Mercedes HPP power units for Formula 1 racing. Lando Norris has expressed confidence in McLaren's potential alongside Mercedes HPP, which has identified issues and believes the team can replicate past mid-season comebacks. Mercedes currently leads the Constructors' Championship.
• Westbrook RacingminorStrategic or Co-development PartnerMercedes HPP employee Matt Wright works as Race Engineer at Westbrook Racing for the E1 RaceBird electric powerboat project. Formula One engineering principles are being applied to the dynamic water environment of electric powerboat racing.
• Mercedes-Benz Group AGcoreStrategic or Co-development PartnerMercedes AMG HPP is a subsidiary of Mercedes-Benz AG. HPP transfers F1 technologies to Mercedes-Benz automotive projects including the Mercedes-AMG ONE hypercar and Vision EQXX concept vehicle. Parent company provides strategic direction and integration opportunities.

Scale indicators2 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Porsche Motorsport: Porsche Motorsport develops high-performance powertrains and electric drive systems for endurance racing (including Formula E) and road-derived performance cars. It is comparable as a large, established motorsport powertrain incumbent with technology transfer programmes into Porsche road vehicles.
• BMW M Motorsport: BMW M Motorsport develops high-performance combustion and hybrid powertrains for IMSA, WEC and touring car racing with parallel technology transfer to M road cars. Comparable to HPP as a major OEM-backed motorsport powertrain division with championship pedigree.

Direct peers

• Red Bull Powertrains: Red Bull Powertrains designs and manufactures the hybrid power units for Oracle Red Bull Racing and RB (Visa Cash App RB) Formula 1 teams, with Honda IP as a starting base. It is the most direct emerging competitor to HPP on the F1 grid and is named alongside HPP in the FIA 2026 regulations complaint.
• Cosworth: Cosworth is an independent high-performance engine designer and manufacturer with deep Formula 1 heritage, now serving motorsport, defence and automotive programmes. It competes with HPP in the broader high-performance powertrain engineering market, particularly for non-OEM customer teams and niche motorsport series.
• Alpine Motorsports (Renault): Alpine is both a current Mercedes HPP customer team (multi-year supply from 2026) and previously housed Renault's in-house F1 engine programme at Viry-Chatillon. It represents the dual competitive and customer dynamic that defines the F1 power unit supplier landscape.
• Scuderia Ferrari Powertrain: Ferrari's in-house Formula 1 power unit division designs, builds and races its own hybrid powertrain for the works Scuderia Ferrari F1 team and historically supplied customer teams. Like Mercedes HPP, it also leverages F1 technology for road car programmes (Ferrari's high-performance hybrids).
• Honda Racing Corporation USA: HRC designs and builds Honda's Formula 1 power units, currently for the Oracle Red Bull Racing and RB teams and formerly for the works Honda team. As a peer engine manufacturer it competes head-to-head with HPP for grid performance and customer contracts.
• Audi Formula Racing GmbH: Audi's dedicated F1 power unit entity is preparing to enter Formula 1 as a works manufacturer in 2026, taking over Sauber's entry. It is a direct competitor for grid slots and customer supply arrangements, and is one of the complainants in the FIA 2026 regulations investigation against HPP.

Emerging players

• Multimatic: Multimatic provides motorsport vehicle engineering, advanced vehicle dynamics and low-volume manufacturing for F1, NASCAR and performance road programmes. It is an emerging adjacent peer in motorsport engineering services rather than direct power unit manufacturing.
• Ilmor Engineering: Ilmor designs and manufactures high-performance engines for IndyCar, NASCAR and marine applications, and provides engineering services. It is comparable to HPP as a specialist independent performance powertrain engineering firm, though operating at a smaller scale and outside Formula 1.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/mercedes-amg-high-performance-powertains

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Mercedes AMG High Performance Powertrains