Owner of Jaguar Land Rover Tata has announced plans to invest £4 billion in a brownfield site in Somerset, close to Bridgwater.
Although the location of the flagship battery factory has been confirmed, this is the first official confirmation from the government that it would be built in the UK.
Four thousand new jobs at the new facility are anticipated, in addition to thousands more in the supplier chain.
According to Tata, battery manufacturing will start there in 2026.
The global battery division of the Tata Group, Agratas, has announced that it will construct its first facility outside of India at the Gravity Smart Campus in Puriton.
Until it was shut down in 2008, the location served as a Royal Ordnance Factory during World War Two.