Jaguar Land Rover has confirmed plans to build electric cars in the UK, delivering a huge boost to the industry which has been hit by a series of setbacks in recent months.
The investment will be made at the firm's factory in Castle Bromwich, West Midlands, although other sites will benefit from the development.
An all-electric version of the Jaguar XJ sedan replacement will be the first new battery-powered vehicle, followed by others including a sports utility vehicle (SUV).
The Castle Bromwich plant will close for six weeks so new equipment can be installed.
The investment follows an agreement for employees to work a four-day week as part of restructuring plans.
Unite said at the time that the deal would secure the future of the Castle Bromwich plant and pave the way for future investment.
Employees will still work a 37-hour week.
The Castle Bromwich plant, near the M6 in Birmingham, employs around 2,500 workers.
Batteries for the new electric XJ are expected to be made in Hams Hall, Warwickshire, while the electric motors will be manufactured at JLR's engine plant near Wolverhampton.