The £6m funding package is focused on scaling up production in the UK of Magtec’s world-leading electric motors.

The project aims to utilise the latest automation technologies and establish Magtec as a tier one supplier to the global transport industry.

The project is expected to create 65 jobs at Magtec and a further 165 across South Yorkshire and the wider region as the company strengthens its UK supply chain.

Magtec will collaborate with leading transport sector OEMs Paneltex, Volta Trucks and Dennis Eagle, strategic partner Angel Trains and research partners the Manufacturing Technology Centre

(MTC) and the University of Sheffield Advanced Manufacturing Research Centre (AMRC) to ensure Magtec accelerates production rates to meet the growing demand for the next generation of electric commercial vehicles.

The MTC and AMRC, both part of the Catapult network of world-leading technology centres, will provide knowledge in processes, systems and materials science and best practice from the automotive and aerospace sectors.

The OEM partners will provide input on manufacturing and testing requirements during the project as well as the route to market for Magtec’s products.

Andrew Gilligan, Managing Director, said: “Fears over a climate emergency are driving change across the global transport industry and Magtec is at the forefront of the technology needed to make it happen.

“We are delighted to be working with our OEM, strategic and research partners to industrialise our manufacturing operations and satisfy demand for our class-leading electric vehicle drive systems.

“We are creating high-quality engineering jobs across our company and regional supply chain and strengthening the UK’s standing in this emerging global sector.”

The international market for commercial electric vehicles is rapidly expanding as governments bring in tough new regulations to combat climate change.

Last year, Magtec won funding from Innovate UK to develop its capabilities for testing power controllers, representing another step in the scaling up of its manufacturing operations.

Jon Beasley, Director of Technology and Projects at the Advanced Propulsion Centre, said: ‘‘It’s an exciting time for the UK automotive industry - we are on the precipice of an innovation landslide. The technology we invest in now is set to make an impact on the next generation of vehicles.”