Jaguar Land Rover-owner chooses Brexit Britain over Spain for multi-billion-pound car battery plant

Some in the car industry have hailed the new plant as the most significant automotive investment in the UK since Nissan came to Britain in the 1980s.

Tata's chief is scheduled to meet the Prime Minister mid-next week.

Although the deal has yet to be signed, sources say the deal has now progressed to drafting how the landmark agreement will be presented.

The new development comes as the Government has acknowledged the urgent need for electric vehicle battery manufacturing in the UK to secure the future of the car industry.

Around 9,000 jobs would be created at the Bridgwater site, close to the M5.

The Tata Group is said to have originally considered choosing Spain as the country to build the battery plant.

The expected decision to choose Somerset is set to be hailed as a major achievement for the UK in the wake of Brexit.

Critics have argued that the UK has struggled to attract investment since Brexit, but with the new plant there is hope it will open the door to further battery investments in the UK.

When pressed on the subject last week, Chancellor Jeremy Hunt told the BBC to "watch this space".

The Government has said that while it does not recognise a figure of £500million in reported subsidies, they concede that hundreds of millions of pounds have been spent on winning the deal.

This means cash grants, energy subsidies and other training and research funding have been spent.

India's Tata has extensive steel interests in the UK including the Port Talbot plant in South Wales and the government will also offer around £300million to subsidise, upgrade, and decarbonise those operations.

Along with additional energy discounts, it will bring the total incentive package to Tata close to £800million.