By Nick Carey and Giulio Piovaccari

OXFORD (Reuters) – Speed has always been paramount for supercar makers, and now they’re in the race of their lives to go electric before climate policy cuts their combustion engines.

YASA, an Oxford-based startup that makes electric cars, is helping Mercedes-Benz and Ferrari to overcome the challenges associated with electrifying high-performance vehicles.

For a small niche market that can run 10 laps on a single track, electric motors heat up and batteries weigh a lot.

Daimler bought YASA this year, which developed an “axial flux”, high-performance electric engine that is only 23kg (50.7 lb). This makes it a fraction of a Ferrari’s V12 engine, which weighs in at close to 300 kg, and about as small and shaped as a steering wheel.

YASA already makes motors for Ferrari, Swedish supercar maker Koenigsegg, plus an unnamed British supercar company. Daimler’s high-performance AMG brand will supply it. It will then take over the Mercedes-Benz car business.

Saietta is a manufacturer of water-cooled axial flux engines. Its headquarters are just a few minutes from YASA. The company has begun production of motors to be used in the huge Asian market for motorbikes.

Graham Lenden (NYSE: Saietta) stated, “These companies know combustion engines inside and out.” But they aren’t familiar with electric powertrains. They need someone to help them.

Although this area is still uncharted, there’s no way to go electric for performance vehicles. To survive the end of the combustion engine, supercar manufacturers will need to spend billions and have no assurance that their technologies will be profitable in the long-term.

WEIGHT IS THE ENEMY

Supercars and the highest-end hypercars – both sportscars that verge on professional racing level performance – are a highly profitable, capital intensive niche market for automakers.

IHS Markit and Consultancy AlixPartners estimate that more than 152,000 luxury and super-luxury sportscars will be sold worldwide in 2021. The market is expected to grow nearly half to 223,000 vehicles by 2026.

Woolmer, founder of YASA, stated that Daimler’s long-term goal was for his company to lower the cost of future motor iterations so it can be used across the entire range.

Woolmer says that automotive technology is not scalable to mass production quickly. Instead, it tends to be developed in premium niche markets.

High-performance electric vehicles will eventually need to be able to produce lighter and more powerful batteries. Today’s battery technology can not compete with a sustained power petrol engine so they will need to rethink everything, from car bodies and electric motors.

The Axial flux electric engines are round, flat devices, also known as “pancakes”, and are more lightweight than traditional cylindrical “radial flux” or “sausage”-shaped motors.

YASA’s motor has oil cooling, which means it will not heat up and far more efficient that a traditional motor. It was developed by Tim Woolmer as part of his Doctorate at Oxford. The company was founded in 2009.

The motor’s efficiency allows it to extend an electric car’s range up to 7%. It also uses less power, which means that manufacturers can remove some heavy batteries from their vehicles and decrease the vehicle’s weight to 10%.

YASA maintains a small plant at Oxford where they make motors and tests motors for AMG. Daimler is looking at ways to increase production in its factories.

Chris Harris, CEO of YASA said that the German giant’s acquisition had not meant an end to its relationship with Ferrari clients.

They want us to keep working with their supercar customers, because they’re the best,” he said. As technology matures it will cascade down.

Michael Leiters, Ferrari’s Chief Technology Officer, described the YASA engine in hybrid cars as “automotive-first”, and said that it would rely on suppliers for technical support in the quest to become electric.

WANTED: BATTERY REVOLUTION

Car companies are also looking beyond motors in their weight-loss plans.

Mate Rimac is the CEO of Croatian-based electric hypercar manufacturer Rimac. He said that the C-Two’s chassis and body were made from carbon fiber and that the batteries are a part of the vehicle’s structure in order to reduce weight.

The company, which is forming https://www.reuters.com/business/autos-transportation/porsche-ag-croatias-rimac-set-up-jv-involving-vws-bugatti-brand-2021-07-05/#:~:text=To%20be%20set%20up%20in,will%20also%20lead%20the%20JV a joint venture with Volkswagen (DE:)’s luxury sportscar unit Porsche that will include VW’s Bugatti brand, also uses “torque vectoring” to boost performance – motors in the wheels to help take corners.

British sportscar maker Lotus created an entirely new platform made of light aluminum alloys. The vehicle’s overall weight is 37% lower and it will be ready for production in 2026.

Lotus, which is also owned by Etika Automobile Malaysia in Malaysia, and China’s Geely Automotive in China respectively, serves as an automotive supplier and engineer for other carmakers. Matt Windle, the managing director of Lotus said that they are in talks with another company to provide the platform. He also stated that he has heard from others interested.

Windle explained that “with the cost and speed to electrification collaboration is the best way.”

FAW Chinese automaker has teamed up U.S.-based engineering & design firm Silk EV for the Silk-FAW venture. The Silk-FAW venture plans to make electric sportscars here.

To reduce motor weight by 20% it uses carbon-fibre parts and a high revolution motor that employs copper-wiring technology from aerospace to make the chassis. But, the company is open to exploring other options.

Roberto Fedeli is Silk-FAW’s vice president of innovation and technology. “Weight savings are even more important than higher levels of power,” he said.

For most people who commute to and from work, cutting weight and using less power may suffice.

It could take a while before those who are interested can be able to purchase them.

Woolmer stated that unless there is a revolution in batteries, it’s unlikely you can carry as much energy as a gasoline tank.

For longer-form racing it will be some time.

($1 = 0.7311 pounds)