Ford is to invest £230m into its Halewood factory to make electric vehicle components in a move which will safeguard 500 jobs and could create up to 700 roles.
The US giant said the Merseyside plant will be "transformed" to build electric power units for future Ford all-electric passenger and commercial vehicles in Europe.
Halewood will be Ford's first electric vehicle component in-house assembly site in Europe, with production beginning in 2024.
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Ford has committed to having all its passenger vehicles as all-electric and two-thirds of its commercial vehicle sales all-electric or plug-in hybrid by 2030.
Power unit production in Halewood is expected to begin in mid-2024, with capacity planned to be around 250,000 units a year, the PA news agency reports.
Ford said the investment is subject to, and includes, Government support through its Automotive Transformation Fund.
Stuart Rowley, president of Ford of Europe, said: "This is an important step, marking Ford's first in-house investment in all-electric vehicle component manufacturing in Europe.
"It strengthens further our ability to deliver 100% of Ford passenger vehicles in Europe being all-electric and two-thirds of our commercial vehicle sales being all-electric or plug-in hybrid by 2030.
"We also want to thank the UK Government for its support for this important investment at Halewood which reconfirms Ford's continuing commitment to the UK and our position as a leading investor in this country's auto industry and technological base."
Unite general secretary Sharon Graham said: "This investment is excellent news for the highly skilled workforce at Halewood as it secures the future of the plant.
"It is absolutely imperative that the Government does not see this investment as a one-off but supports similar schemes to ensure the entire UK automotive industry experiences a smooth transition in the move to build electric vehicles."
Unite national officer Des Quinn added: "Unite is absolutely dedicated to protect the jobs, pay and conditions of all our members and is working to ensure that similar projects are adopted throughout the UK's world class automotive sector."
Ford said Halewood was chosen to supply the power units, which replace the engine and transmission in a conventional petrol or diesel engine vehicle, given its excellent record on quality, competitiveness and the strong skills base and commitment of the employees.
Halewood currently builds transmissions for a number of Ford passenger and commercial vehicles and exports all of its production.
Ford is one of the UK's largest exporters, exporting engines and transmissions from its facilities to more than 15 countries on six continents - with overseas sales generating around £2.5bn annually.
Unite said it understands there is the prospect of between 400 and 700 jobs being created.
