Dyson scraps £2.5bn electric car project claiming it isn't commercially viable

Dyson will now focus on developing solid-state batteries and technologies like AI and machine learning

Dyson, the British company known for its high-tech vacuum cleaners, has decided to scrap its £2.5 billion electric car project.

In an email sent to all employees, Sir James Dyson, the founder of the company, said that the company "can no longer see a way to make it commercially viable" and had also failed to find a buyer for the project.

He added that Dyson was not scrapping all the technology related to electric vehicles, and would continue its £2.5 billion investment programme to focus on developing solid-state batteries and other technologies like artificial intelligence, machine learning, robotics, and vision systems.

He also stressed that the company will continue to deepen its research and development roots in both the UK and Singapore.

Sir James announced his electric car project in 2017, saying he planned to invest £2.5 billion in technologies including a battery-powered car, which would be unveiled in 2020.

Last year, the company revealed its plans to build a car manufacturing plant in Singapore in order to be closest to its component supply chain, as well as major global markets. The decision pushed the car launch date back to 2021.

The company also announced that it would invest £200 million in a car test facility on a former Second World War airfield at Hullavington.

In May, some early details of Dyson's electric car emerged after the publication of three patent applications filed some 18 months ago.

Dyson's electric car division employed about 525 people, 500 of whom were based in the UK, and the rest in Singapore.

Sir James has praised "immense" achievements of his team, and said that scrapping of the project "is not a product failure or a failure of the team". He stated that the company is working to find alternative roles for the employees associated with the electric car project.

The company's founder also said that the company would support the employees for whom it fails to find new roles within the company.

In his message, Sir James said that the company had been taking risks since day one, and while such approach drives progress in the long run, the path to success is never easy.

"This is a challenging time for our colleagues and I appreciate your understanding and sensitivity as we consult with those who are affected," Dyson wrote.

"This is not the first project which has changed direction and it will not be the last," he added.