The development, which is expected to take up to two years to build, will be on the i54 business park in Wolverhampton, one of the Government’s new enterprise zones.
The giant plant is expected to take around two years to build and could eventually employ up to 2,000 workers
JLR’s engines are currently supplied by Ford from plants including Bridgend and Dagenham.
However, the car maker wants to take greater control of its engine production as sales boom in Asia.
