The two firms didn't name the vehicle but said it will be launched by an established European brand.

The plug-in hybrid will feature a bespoke Axeon battery system using Nanophosphate lithium iron cells from A123 Systems. The solution will include ultra-lightweight, liquid-cooled battery pack and a development of the Ricardo’s Battery Management System incorporating active cell balancing.

Ricardo will engineer the pack including all aspects of the mechanical, electrical/electronic hardware and software, including thermal design considerations and safety. Axeon will subsequently assume full responsibility for a full test and validation programme, production and supply.

Lawrence Berns, CEO of Axeon, said: 'This car will transform thinking about hybrid cars in every area, especially performance. Our technology will play a key role, underlining our prowess in this competitive field and showing that hybrids can also offer significant advances to performance as well as environmental benefits.'