BMW has announced plans to invest hundreds of millions of pounds to equip its Mini factory near Oxford for the production of a new generation of electric vehicles.

In 2026, production of two new electric Mini models will commence at the Cowley facility.

The move is likely to secure the facility’s existence as well as the future of another business in Swindon.

Currently, around 4,000 people work across the two campuses.

BMW will invest £600 million in upgrading the Cowley factory, developing manufacturing lines, expanding its body shop, and constructing a new battery installation area.

It also intends to expand logistical facilities at Cowley and the Swindon factory, which produces body panels for new vehicles.

This will enable the production of two next-generation electric vehicles, the Mini Cooper and the bigger Mini Aceman, alongside conventional vehicles at Cowley.

The Countryman, a third electric vehicle, will be manufactured in Germany.

The UK investment will be backed by government funds, estimated to be worth £75 million.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders in the United Kingdom, described the move as a “vote of confidence” in the country’s automobile manufacturing industry.