Work is due to start on two new centres of innovation at the University Of Warwick in Coventry.
Dozens of jobs will be created at new energy storage and materials hubs at Warwick Manufacturing Group , based at the University.
The move comes as a new £100 million National Automotive Innovation Campus is also being built at the university, which will play a major part in Jaguar Land Rover’s research and development.
The £13 million UK Energy Storage R&D Centre will create about 40 jobs and has secured £4 million of industry investment.
The Government has invested the remaining £4 million as part of plans to secure future growth opportunities for the UK’s automotive sector by supporting electric cars and other ultra-low carbon vehicles.
Professor Lord Kumar Bhattacharyya, chairman of WMG, said the centre would help the region continue to be a global leader in low carbon vehicle manufacturing.
He added: “We are setting up a huge facility for developing new energy storage, funded to a large extent by the private sector and BIS.”
The centre will focus on the immediate priority of batteries for the low and ultra low carbon vehicles, but it will have the potential to extend to storage for other transport applications including commercial and off-road vehicles, rail and marine, and to other technologies such as fuel cells.
Meanwhile, work on the new materials centre will start later in the year and be completed by 2015. It progresses WMG’s relationship with Tata Steels, and will focus on developing the materials of the future for automotive and wider industry.
WMG is well-known for its relationship with Tata Motors, but actually worked with Corus before the Indian firm’s takeover.
The Post reported last month that up to 1,000 jobs will be created at the automotive campus, with Jaguar Land Rover investing £45 million.
Lord Bhattacharyya said it would be the closest thing to a ‘fraunhofer’ – a private funded centre of R&D excellence – outside Germany.