Jaguar Land Rover's £15bn Electric Car Investment

It follows JLR reducing output at its Halewood and Solihull plants in November due to ongoing problems obtaining enough computer chips for new vehicles.

JLR Chief Executive Adrian Mardell said: "I am proud to announce we are accelerating our electrification path, making one of our UK plants and our next-generation medium-size luxury SUV architecture fully electric.

"This investment enables us to deliver our modern luxury electric future, developing new skills, and reaffirming our commitment to be net zero carbon by 2039."

Knowsley Council said it was "delighted" that 3,700 people who work at Halewood would be "spearheading" the move into all-electric production with the site "at the very heart of the company's future plans".

"It is fantastic, not only for the thousands of local people currently employed by JLR in Halewood, but it also means countless opportunities for the workforce of the future, too," it added.

The firm also announced its new Jaguar models would be assembled at the company’s plant in Solihull with its existing engine manufacturing centre in Wolverhampton transformed into a hub for building electric motors.

It said it would be renamed the Electric Propulsion Manufacturing Centre and produce electric drive units and battery packs for JLR’s next generation vehicles.

JLR added that its Castle Bromwich plant would provide body work for next generation electric vehicles while the firm continues to explore options for other parts of the site.