An automotive manufacturer has signed a £1.5 billion joint-venture deal with Chinese investors that will create 220 jobs in Leamington Spa. Detroit Electric (DE) (www.detroit-electric-group.com) has agreed the deal with the Far East Smarter Energy Group and will invest £300 million in its European operations.

This will initially fund the completion of the final development phase of DE’s all-electric SP:01 sports car — and then the start of volume production at the company’s Leamington Spa facilities.

Albert Lam, chairman and chief executive of DE, said: “We have been working exceptionally hard over a long period to establish this joint venture and to secure funding for our ambitious new electric-vehicle programme, so I am delighted to be able to announce this new joint venture.

“It represents a significant boost to vehicle manufacturing and the electric-vehicle industry in Europe and an important new step towards bringing our family of EVs to market.”

Series production of the SP:01 is expected to start later this year.

In parallel to its SP:01 activities in the UK, the new joint venture will establish an all-new design, R&D testing and production facility, where the focus will be on developing a family of DE vehicles for launch in the coming years.

First in the pipeline is an all-new battery-electric sports utility vehicle that will enter production in late 2018. To accommodate the assembly lines for new models, the company plans to expand its facilities in Leamington Spa and increase its workforce to more than 400 people, with perhaps the same number employed indirectly through the local supply chain. By 2020, it aims to be selling 100,000 DE vehicles a year.

The Far East Smarter Energy Group is a publicly traded company on the Shanghai Stock Exchange. Based in Yixing, China, it is primarily engaged in the design, development and manufacture of electrical systems and batteries, plus technologies for transportation and energy storage.