A prototype magnetic continuously variable transmission (mCVT) will be developed for a heavy-duty vehicle application. A proof of concept mCVT (TRL2/3) was successfully demonstrated in 2010 by Magnomatics, with functionality to enable a passenger car engine to operate within its peak efficiency region and give variable speed drive to the wheels. This novel mCVT provides clear advantages over traditional transmission systems: high efficiency (>99.5% peak), compactness, contactless and lubrication-free operation, infinitely variable transmission and inherent over-torque protection. The mCVT is a significant invention that gives a step change in performance and functionality, suitable for use in passenger cars, commercial vehicles, wind turbines and many industrial systems. Commercial success for all sectors depends on the development of advanced manufacturing techniques to enable robust, cost-effective, volume manufacture. Significantly, these same advanced manufacturing techniques will also enable cost reduction and volume manufacture of magnetically-geared traction motors developed in related TSB projects. The consortium intends to address the chief engineering challenges and specify, design, build, and test a cost-optimised mCVT and demonstrate how the principal value is added by specialist UK manufacturers.