The incubators are in partnership with the Ontario Vehicle Innovation Network and will be located in Windsor, Kitchener-Waterloo and Toronto

Mercedes and the Ontario Vehicle Innovation Network are partnering to establish three incubators across the province to foster startup businesses for next-generation vehicles.

The incubators (located in Windsor, Kitchener-Waterloo and Toronto) will be part of the global Mercedes-Benz Startup Autobahn network, which was founded in 2016.

“In our global R&D strategy, open innovation gives us rapid and direct access to the latest ideas and developments around the world. We are therefore delighted to further expand our activities in Canada as a founding partner of the OVIN Incubators,” says Markus Schäfer, member of the board of management and chief technology officer for development and procurement at of Mercedes-Benz Group AG, in a press statement.

The incubators are focusing on startup companies that create products for or conduct research in future software and artificial intelligence, future vehicle components and future electric drivetrains.

“By joining this network, the OVIN Incubators will also contribute to a global pool of ideas, innovations, and technologies whereby Ontario SMEs can participate in Mercedes-Benz’s supply chain and form part of future product offerings,” reads an announcement press release.

Building on 2022 MOU

Mercedes’ partnership with the Ontario Vehicle Innovation Network (OVIN) follows the German automaker’s memorandum of understanding (MOU) with Canada, signed in 2022.

While much of the furor at that time was around securing supplies of critical battery minerals, but at the announcement Schäfer hinted, “[Mercedes’] cooperation and partnership goes way beyond raw materials. We want to develop auto new technology here on the battery side. The next level of battery — new energy density batteries — but other EV components as well.”

In addition to the incubators, Mercedes is beginning a research partnership (under a separate MOU) with the University of Waterloo with a focus on neuromorphic computing, which applies in automated driving.

“The move complements a range of ongoing Mercedes-Benz R&D activities in Canada,” reads the Mercedes press release.

“By mimicking the functionality of the human brain, neuromorphic computing could significantly improve AI computation, making it faster and more energy efficient. While preserving vehicle range, safety systems could, for example, detect traffic signs, lanes and objects much better, even in poor visibility, and react faster. Neuromorphic computing has the potential to reduce the energy required to process data for autonomous driving by 90 percent compared to current systems.”

Room to expand

Mercedes and OVIN are opening the first three incubators in a pilot program format.

Together, Mercedes and OVIN will, through an evaluation process, scout the Windsor, Kitchener-Waterloo and Toronto incubators for “individual projects that will progress to proof-of-concept based on Mercedes‑Benz use cases.”

Should all go well, there may be the opportunity for more incubators.

“Looking to the future,” reads the release, “the next phase of the OVIN Incubators will seek to expand its scope through the addition of further partners from industry and academia.”