The investment, said to be worth hundreds of millions of pounds, would safeguard more than 1,000 factory jobs.The owner of car brand Vauxhall is expected to announce plans to build electric vans at its Ellesmere Port plant in Cheshire.
The future of the plant has been in doubt after Vauxhall's parent company, Stellantis, scrapped plans to build its new Astra model there.
Details of the plans are set to be revealed at press conference later.
Stellantis has held discussions with the UK government over options for its Cheshire factory and it is known the company is seeking financial support for its plans.
Carlos Tavares, head of Stellantis, previously warned that the company would no longer invest in pure diesel or petrol cars at the plant, and said a decision on where it would build electric vehicles would depend on the UK government's support of the car sector.
Sales of vans have been booming during the pandemic, as a result of growing home delivery sales.
But manufacturers are investing for a changing market. The UK and other European countries have announced a ban on the sale of new petrol and diesel cars as of 2030.
Last week, Japanese carmaker Nissan announced an expansion of electric vehicle production at its car plant in Sunderland which will create 1,650 new jobs.
The outlook for the British automotive industry is certainly a lot rosier now than it was just a few months ago.
Without investment in new products every few years, car plants die; and the ageing factory at Ellesmere Port has long been regarded as particularly vulnerable.
Earlier this year Carlos Tavares, the acerbic chief executive of Vauxhall's parent company Stellantis, made it very clear that investment would only arrive if the government itself were prepared to support the industry.
It appears the government has done just that, with both Nissan, and later today Stellantis itself, pledging to spend serious amounts of money developing electric vehicles here as a result.
But there's a long way to go to secure the future of car manufacturing, as it prepares for an all-electric future. After years of uncertainty over the outcome of Brexit, which made carmakers reluctant to commit to new plans, the UK is still playing catch-up.
So while the news from Nissan and Vauxhall has been widely welcomed, people within the sector agree that much more is needed.
Stellantis is the world's fifth-largest carmaker and also owns Peugeot, Fiat and Chrysler.
Ellesmere Port, acquired by Vauxhall Motors in 1957 from the Royal Auxiliary Air Force, initially developed the site as a sub-assembly and engine production line for its Dunstable and Luton factories
Employment peaked at the site in 1975, with 12,000 people on staff.
Via PakapNews