Magtec has commissioned a 65,000 sq ft facility in Rotherham, South Yorkshire to design, manufacture and integration of its drive systems for electric and hybrid vehicles.
The firm said the move was needed to scale up production and meet growing international demand.
The privately-funded move represents a multi-million pound commitment and creates 30 highly skilled new jobs for engineers to work on projects at the cutting edge of transportation.
Magtec, founded by chief technical officer Marcus Jenkins, is delivering electric and hybrid drive systems for buses, commercial vehicles, special vehicles and trains.
The company employs 125 people including six apprentices and has been operating from two sites in Sheffield and Rotherham.
Managing Director Andrew Gilligan said: “We are delighted to be opening our new factory in South Yorkshire and proud to be investing in the future of high-tech design and manufacturing in the UK.
“Fears over a climate emergency are driving change across the global transport industry and Magtec is absolutely at the forefront of the technology needed to make it happen.
“Our new factory gives us the space to grow, increase production volumes and fulfil our potential in this exciting sector.”
Business Secretary Kwasi Kwarteng said: “I’m excited that this new factory is opening up in Rotherham, creating highly-skilled jobs in the local community as part of the growing electric vehicle market.
“This is a perfect example of how our transition away from petrol and diesel cars to electric vehicles can create jobs and attract investment, all while cutting emissions so we can end our contribution to climate change.”
The new site at Magna 34 Business Park, close to the M1, is spread across two buildings.
Magtec One houses the Centre of Excellence for engineering and a cellular manufacturing facility for motors and gearboxes, test rigs for production and development work and a machine shop with the latest equipment.
Magtec Two houses the battery build section, raft build production lines for electric vehicle and hybrid drive systems for road and rail applications, a controller build section, an environmental test chamber and vehicle integration section. It will also serve the company’s growing business re-powering buses for transport groups.