It follows Jaguar Land Rover slashing production at its Halewood and Solihull plants in November amid ongoing problems getting enough computer chips for new cars.
Adrian Mardell, chief executive of Jaguar Land Rover, said: “I am proud to announce that we are accelerating the electrification process, making one of our UK factories and our next-generation mid-size luxury SUV architecture fully electric.
“This investment enables us to realize the future of modern luxury electric vehicles, develop new skills and reaffirm our commitment to achieve net zero carbon emissions by 2039.”
Knowsley Council said it was “delighted” that the 3,700 employees working at Halewood would be “leading the way” in the move to all-electric production and that the site was “central to the company’s future plans”.
“This is fantastic and means countless opportunities not only for the thousands of locals Jaguar Land Rover currently employs at Halewood, but also for the workforce of the future,” it added.
The company also announced that its new Jaguar models will be assembled at the company’s factory in Solihull and that its existing engine manufacturing center in Wolverhampton will be converted into an electric vehicle manufacturing centre.
The company said it would change its name to the Electric Propulsion Manufacturing Center to produce electric drive units and battery packs for Jaguar Land Rover’s next-generation vehicles.
JLR added that its Castle Bromwich factory will provide the bodies for the next generation of electric vehicles, while the company continues to explore options for other parts of the site.