Liberty Electric Cars has announced it plans to produce the world's first zero emission, electric 4x4 vehicle, creating around 250 new jobs.
Later this year the Oxford-based company will start producing the cars at Cramlington in Northumberland.
It is set to invest £30 million into the project and is currently in discussions with the region's major suppliers.
The first vehicle is going to be a plug-in electric Range Rover and more than 1,000 are expected to be made annually. Not only will it create new jobs it will also boost the local economy by £120 million each year.
Barry Shrier, chief executive of Liberty, said: "The Liberty Electric Range Rover takes electric vehicle technology into a new sector, to large luxury cars that people aspire to drive, particularly in cities and urban environments where environmental controls are becoming increasingly tighter.
"North-east England, through the stewardship of One North East, is fast becoming a world leader in clean energy, infrastructure development and electric vehicle manufacturing, which is why we feel that our business will prosper here. We have also been greatly encouraged by the region's strong academic links."
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