The new facility will be built at i54 South Staffordshire, a business park near Wolverhampton in the UK's Midlands.
Dr Ralf Speth, chief executive officer, JLR, said: ‘As part of our long-term strategy for the JLR business, we will design, engineer and manufacture a new family of advanced engines. This is a major commitment for our company and we will produce these advanced, highly-efficient engines for future Jaguar and Land Rover models at a new facility in the UK.

‘As we invest £1.5bn a year for the next five years on new product developments, expanding our engine range will help us realise the full global potential of the Jaguar and Land Rover brands. The all-new family of four-cylinder engines will increase JLR's capability to offer high-performance engines with class-leading levels of refinement, whilst ensuring continued significant reductions in vehicle emissions.’

The engine manufacturing facility is expected to create up to 750 jobs, along with thousands more highly-skilled manufacturing jobs in the supply chain and the wider UK economy.