Jaguar Land Rover (JLR) is investing hundreds of millions of pounds to build a range of electric vehicles at its Castle Bromwich plant in Birmingham.
Initially the plant will produce an electric version of the Jaguar XJ.
JLR says the move will help secure the jobs of 2,700 workers at the plant.
The news follows January's announcement, when the firm said it would cut 4,500 jobs, with the majority coming from the UK. That followed 1,500 jobs lost in 2018.