The £13m research and development facility will receive £9m funding from the government with the remaining £4m to be brought in by the industry.

To be located in high value manufacturing catapult at the University of Warwick, the R&D facility is part of the government’s £400m commitment to support electric cars and ultra-low carbon vehicles over the next four years.

The facility will initially develop batteries for the low and ultra low carbon vehicles, with a long-term focus on commercial and off-road vehicles, rail and marine, and other technologies such as fuel cells. It will utilize the UK’s research base in electrochemistry.

UK Business Minister Michael Fallon remarked that the investment is vital to the automotive sector and will accelerate the development of battery cells for future vehicles.

"It complements over £5.5 billion that global vehicle manufacturers have committed to UK projects in the last 18 months.

It will put the UK in a much stronger, competitive position to capitalise on a growing worldwide market for low carbon vehicles, alongside other world leaders in the field including the United States, Japan and Germany," said Fallon.

Technology Strategy Board director of innovation programs David Bott said, "The establishment of this centre will help to increase the global competitiveness of the UK’s emerging Low Carbon Vehicle’s industry."

The funding for the facility was secured in partnership with the Automotive Council Technology Group.