The site is part of the University of Sheffield Innovation District, and close to the M1 motorway and public transport links.
It is around two miles from the group's existing Gigafactory and Technology Centre at Bessemer Park.
The land has outline planning consent and a full design brief agreed with the city council. The acquisition is subject to the granting of full planning permission for the new factory.
The University of Sheffield and ITM Power are collaborating to provide a boost for the hydrogen sector, including an agreement for a new ITM Gigafactory and a joint plan to launch a National Hydrogen Research, Innovation and Skills Centre.
The statement added: "As set out at the time of the recent fundraise, ITM intends to build a second automated factory of some 260,000 sq. ft on the site with a capacity of 1.5 GW pa and currently expected to be fully operational by the end of 2023 to complement the existing 1 GW pa capacity at Bessemer Park.
"The new factory will provide the template for the group's first international facility, which is expected to have a capacity of 2.5 GW pa, expected to bring total group electrolyser capacity to 5 GW per annum by the end of 2024. One of the key features of the second UK factory will be an enlarged power supply to test multiple modules of the Company's next generation product concurrently.
"The overall cost of the new Sheffield factory is expected to be in the region of £50-55m. In addition to the land cost of £13.4m, the Company is currently allocating up to £16m for the construction of the shell, and a further £20-25m for the fit-out and power supply.
"The new factory will also include office space for manufacturing staff and will be a low environmental impact building, using the best of current low carbon technologies. ITM Power will work closely with a developer, to be appointed once planning permission has been received, to incorporate low carbon footprint materials and facilities."
Dr Graham Cooley, CEO of ITM Power, said: "I am delighted to be working more closely with the University of Sheffield and delighted that our second UK factory site is in Sheffield. Both initiatives will support the local economy through job creation and supply chain support.
"The planning and construction of our second, 1.5 GW capacity, factory marks the next step on delivering our strategic plan to create a blueprint for an automated PEM electrolyser manufacturing facility to be rolled out internationally. At the same time, we are also focussed on increasing utilisation and throughput at our Bessemer Park Gigafactory as we prepare for the next step change in capacity."
Sir Roger Bone, Chairman of ITM Power, said: "The opportunity to partner with the University of Sheffield, recognised for its excellence in all aspects of industrial research, will enable both parties to train the next generation of hydrogen engineers and scientists, and continue to grow the company and the economy in the region. I look forward to seeing this relationship develop and prosper in the years ahead"
Professor Koen Lamberts, President and Vice-Chancellor of the University of Sheffield said: "We are very pleased to be launching this partnership with ITM Power. Hydrogen is one of the most exciting and promising clean energy solutions and ITM is at the forefront of green hydrogen manufacturing. This partnership is a milestone for both partners and the region in leading the way to achieving net zero through technological innovation."
Professor Dave Petley, Vice-President for Innovation at the University of Sheffield said: "The University of Sheffield has world renowned expertise in energy innovation, and we recently announced a new Sustainable Aviation Fuels Innovation Centre, adjacent to our Translational Energy Research Centre, both housed at the University of Sheffield Innovation District. Our experience in bringing together academic research and industrial expertise is helping to solve the world's biggest problems, and our partnership with ITM Power to advance the hydrogen sector will help make net zero a reality."