Jaguar Land Rover has received a £625m boost to support the research, development and export of battery electric vehicles.
A total of 80% has been backed by an export development guarantee from the Government's UK Export Finance, International Trade Secretary Anne-Marie Trevelyan confirmed.
The rest of the financing has been made up from 12 commercial banks.
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The Government said the funding will support Jaguar Land Rover’s plans to invest about £2.5bn a year, expected to reach £3bn by March 2026, to increase the number of battery electric vehicles in its model line up under its Reimagine Strategy.
Adrian Mardell, Jaguar Land Rover’s chief financial officer, said: "Jaguar Land Rover is pleased to have worked again with UK Export Finance on this new EDG facility.
"This will help support the significant investment in our transition to offer a fully electrified product portfolio and to achieve our target of net zero carbon emissions by 2039."
JLR has also confirmed that its revenue accelerated by 22% to almost £5bn during the third quarter of its financial year, but it still posted losses of £9m.
The group posted a revenue of £4.7bn for the three months to December 31, 2021, while its EBIT margin improved to 1.4% compared to its second quarter.
JLR said its record order book of almost 155,000 vehicles, a rise of 30,000 from Q2, was because of "strong demand" for the new Range Rover.
The group added that "while production and sales remain significantly constrained by semiconductor shortages, the company continues to see strong demand for its products with global retail orders at record levels".
Wholesales to dealers in Q3 were 69,182 units, up 8% on Q2 FY22 with production volumes up 41% to 72,184 units.
Overall, however, sales remained "significantly constrained" by chip shortages and low inventories with retail sales in Q3 of 80,126 vehicles, down 13.6% from Q2 FY22 and 37.6% from Q3 FY21.
The mix of electrified retail sales (BEV, PHEV and MHEV) increased to 69% in Q3 compared to 53% a year ago.
JLR added: "While regional sales broadly followed total sales, model mix was stronger with wholesales of the Range Rover model family up 30% on the prior quarter."
JLR has UK operations in Whitley, Gaydon, Solihull, Manchester, Castle Bromwich, Wolverhampton and Halewood.
Mr Mardell said: "It was encouraging to see a positive EBIT margin and cashflow, despite chip supply constraining wholesales to 69,000 units in the quarter.
"It demonstrates the progress we’ve made in reducing the breakeven point in the business through mix optimisation and cost efficiencies so we will be well placed as supply and sales volumes improve."
Chief executive Thierry Bolloré added: "Whilst semiconductor supplies have continued to constrain sales this quarter, we continue to see very strong demand for our products underlining the desirability of our vehicles.
"The global order book is at record levels and has grown an incredible 30,000 units for the New Range Rover before deliveries even start this Quarter.
"We continue to execute our Reimagine strategy to realise the full potential of the business and create the next generation of the most desirable luxury vehicles for the most discerning of customers."
