It is available with a range of engines, the top of the range being a supercharged Honda Civic Type-R K20 and a supercharged 2.0 litre, 300 hp (220 kW) GM Ecotec engine. With each of these engines it can achieve acceleration rivaling that of much more expensive automobiles. Although the top speed of approximately 140 mph (230 km/h)-150 mph (240 km/h) is relatively tame compared to more exotic sports cars, the high power-to-weight ratio (approximately 500 bhp/ton, or 650 bhp/ton supercharged) affords it very fast acceleration and the low weight provides excellent control through corners.

The Atom began as a student project by Coventry University transport design student, Nik Smart. Known then as the LSC (Lightweight Sports Car), it was developed at the university in 1996 with input and funding from various automotive industry members, including British Steel and TWR. Ariel Motor Company boss Simon Saunders was a senior lecturer whose responsibility for the project was primarily as financial manager and design critic for Smart, whom he described as "The best all-round design student I've ever seen." The car was first shown publicly at the British International Motor Show at the NEC in Birmingham in October 1996.