Zytek was founded in 1981 by Gibson as part of the Zytek Group, which comprised two main divisions: Zytek Automotive at Fradley, Staffordshire, and Zytek Engineering at Repton, Derbyshire. The initial focus of the company was on engine management systems for motorsport, where it quickly established a reputation for electronic control innovation.
In 2000, Motorola acquired a 19 percent stake in Zytek Automotive; that stake passed to Continental AG in 2006 when Continental purchased Motorola's automotive divisions. Continental progressively increased its shareholding, eventually acquiring the entire business in 2014. Zytek Engineering, the other half of the original group, remained under Gibson's leadership and was renamed Gibson Technology on 1 October 2014.
Zytek's earliest motorsport work, from 1981 onward, centred on engine management systems. In 1984 the company developed what is claimed to be the first fully electronic engine management system used in Formula One, fitted to the Toleman-Hart car driven by Ayrton Senna. The company subsequently worked across multiple racing championships including Formula 3000, the Le Mans Series, the Renault FR3.5 Series, and the Auto GP Championship.
In 2009, Zytek developed the kinetic energy recovery system (KERS) used by the Mercedes/McLaren car driven by Lewis Hamilton, which became the first KERS-equipped car to win a Formula One race. From 2014, Zytek was engaged as an electric inverter and motor supplier for teams competing in the inaugural Formula E season, delivering race-ready systems within six months. Its Formula E customers included four of six drivers and manufacturers championship winners across multiple seasons, accumulating 16 race wins as a supplier. Zytek also developed a hybrid ERS system for Honda's Super GT programme in Japan, retrofitted to Honda's existing platform.
During the 1990s, Zytek developed high power-density electric vehicle drivetrains alongside its motorsport work, producing what was described at the time as the highest power-density EV drivetrain available. Road car collaborations included the Jaguar XJ220 engine management system, the Aston Martin DB7 engine management system, and later work with Jaguar Land Rover, Rolls-Royce, Bentley, and Dodge. In 2001 the company worked with General Motors on a hybrid truck concept.
In 2006, Zytek converted one hundred Smart Fortwo city cars to fully electric specification; these participated in UK market trials as lease vehicles from 2007 to 2009. The following year Zytek developed a hydrogen fuel cell concept with Morgan, designated the EV3. Zytek also supplied the 70 kW integrated drivetrain installed in the Modec electric commercial vehicle and the E Vito Taxi.
In the early 2010s Zytek collaborated with Audi on the electrification technology for the Audi R8 e-tron, which set records as the fastest production electric car at the Nürburgring and appeared in the Iron Man film. In 2011 Zytek partnered with Gordon Murray Design on the T.27, an all-electric three-seater city car developed with £9 million in total funding, including £4.5 million from the UK government's Technology Strategy Board. The T.27 prototype was unveiled at the Royal Automobile Club in June 2011. The current family of Zytek electric motors reaches up to 170 kW, and the Fradley facility can accommodate up to 6,000 E-Drive integrations per year.