Championship-winning operation to cease at season’s end, with its license returning to Formula E as the grid shrinks.
In a significant blow to the all-electric racing series, the NEOM McLaren Formula E team will officially cease operations at the conclusion of the 2024-25 season. The decision comes after an extensive and ultimately unsuccessful search for a new buyer, forcing the championship-winning outfit to fold and return its entry license to Formula E Operations.
The team’s final race will be the London E-Prix double-header in two and a half weeks’ time, bringing an end to a brief but impactful chapter in the sport.
The closure was confirmed after months of uncertainty. McLaren had announced its strategic exit from the series in April 2025, triggering a race against time to find a new investor to take over the operation. Team Principal Ian James led a determined effort, engaging in discussions with several potential partners, including rumoured interest from major automotive brands like Citroën, Opel, and Hyundai.
However, sources indicate that despite some promising initial talks, deals collapsed due to misaligned timelines, concerns over long-term financial returns, and disagreements on control. With a mid-September deadline looming for Season 13 entry commitments, potential investors were unable to secure the necessary backing in time, forcing McLaren to make the final, difficult call.
McLaren’s withdrawal is part of a broader strategic restructuring of its extensive motorsport portfolio. The British racing giant has chosen to reallocate its resources and focus on its core commitments in Formula 1 and IndyCar, alongside a highly anticipated entry into the World Endurance Championship’s (WEC) hypercar class, set to begin in 2027.
McLaren CEO Zak Brown has emphasized that this pivot aligns with the company’s long-term objectives, particularly the ambition to conquer endurance racing’s top prize at Le Mans and complete motorsport’s unofficial “Triple Crown.” Formula E, despite its merits, was deemed outside the scope of this new strategic direction.
The team’s demise is particularly poignant given its pedigree. The operation began as the dominant, title-winning Mercedes-EQ team before being acquired by McLaren ahead of the 2022-23 season. Under the McLaren banner, it continued to be a formidable competitor, securing a memorable victory with driver Sam Bird in São Paulo last year.
This legacy of success makes the closure a sobering reminder of the financial pressures within modern motorsport, where on-track performance does not always guarantee long-term sustainability.
The team’s collapse will have immediate and significant consequences for the Formula E grid. With the license reverting to the series promoter, the grid for the 2025-26 season will shrink to 10 teams and 20 cars—its smallest size in seven years. It now falls to Formula E Operations to decide whether to sell the entry to a new entity or operate with a reduced field.
The human cost is also significant. The closure has already triggered moves in the driver market. Standout rookie Taylor Barnard has been signed to a multi-year deal with rival team DS Penske, securing his future in the championship. His experienced teammate, Sam Bird, is now actively exploring opportunities elsewhere on the grid. The rest of the team’s dedicated technical staff, engineers, and personnel now face the challenge of finding new positions in the competitive motorsport paddock.
As the NEOM McLaren team prepares for its swansong on the streets of London, it leaves behind a legacy of brief but potent success. Its closure marks the end of a chapter for McLaren and presents a new challenge for Formula E, which must now navigate the future without one of its most accomplished recent competitors.
