BMW is spending £600 million in all on the factory and on another in Swindon. There will also be a taxpayer funded subsidy worth tens of millions to build new electric Mini’s.
Mike Hawes, chief executive of UK industry body the Society of Motor Manufacturers and Traders, said: "Not only does it secure the long-term future of the home of one of the world’s most iconic brands, it also demonstrates once again our capabilities in electric vehicle production.”
It is one of a series of electric vehicle projects that will get government funding.
Chancellor Jeremy Hunt called it a “huge vote of confidence” in the UK.
While critics say Britain is still playing catch-up on electric vehicles there have been several big moves lately.
The Oxford plant is to build two new all-electric Mini models from 2026, the 3-door Mini Coooper and the compact crossover Mini Aceman.
BMW says by 2030 it will have spent over £3 billion in its Swindon, Hams Hall and Oxford plants since 2000.
In July Tata said it will build a gigafactory in Somerset for Jaguar Land Rover car batteries. Last week Vauxhaul started producing electric vans at its factory in Ellesmere Port.
Jaguar says it will be all-electric by 2025.
Prime Minister Rishi Sunak said: “BMW Group’s investment is another shining example of how the UK is the best place to build the cars of the future. By backing out car manufacturing industry we are securing thousands of jobs and growing our economy right across the country.”
