Magtec is in a group of firms which has received a grant from the Advanced Propulsion Centre as the market booms due to tough new regulations to combat climate change.
The company, based on Newhall Road, Attercliffe, makes electric and hybrid drive systems for cars, bin lorries, buses and trams.
About half of business is retro-fitting old vehicles and half is supplying some of the world’s best-known manufacturers and converters.
The new project aims to use automation to establish Magtec as a ‘tier one’ supplier to the global transport industry.
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 manufacturing, 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.”
Magtec will work with manufacturers including Paneltex, Volta Trucks and Dennis Eagle, strategic partner Angel Trains and research partners the Manufacturing Technology Centre and the University of Sheffield Advanced Manufacturing Research.
The Advanced Propulsion Centre is backed by industry and government and funds low-carbon emission powertrain technologies.
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.”
Last year, Magtec won funding from Innovate UK - part of the government - to develop testing for power controllers, representing another step in the scaling up of its manufacturing operations.
Founded in 1992, Magtec programmes include:
The UK’s first electric 7.5 tonne commercial vehicles for the urban daily deliveries market and the UK rail industry’s first conversion of a diesel multiple unit to hybrid drive.