The MINI Electric has a 135kW motor, with a maximum range of up to 144 miles per charge.
Manufacturing is expected to start in late 2019, with first deliveries in the spring of 2020 after 15,000 potential customers already expressed an interest in the car.
Research supported by MINI showed more than 1.5 million households that are “perfectly suited” to running an electric vehicle are not doing so.
They have off-street parking to allow easy at-home charging and more than one car in the household, out of which at least one never does more than 100 miles a day.
David George, Director of MINI in the UK said: “Now our customers can have everything they love about MINI, but with all the advantages of an electric car – lower environmental impact and running costs and they never have to visit a petrol station again.
“We believe the new MINI Electric could be a tipping point for those who have been thinking about choosing an electric car to take that step now. We aim to introduce a whole new group of drivers in the UK to the fun and cost savings of electric driving, in a way only MINI can.”
There will be three versions of the three-door MINI Electric hatchback, with the standard model costing £24,400.
The news comes as the car manufacturer’s has set a goal to have 25 electrified models on the market by 2023.
Business and Energy Secretary Greg Clark added: “Our automotive industry has long been a source of national pride and the unique collaboration between government and industry through our Industrial Strategy has helped put the UK at the forefront of the design and manufacture of zero emission vehicles, with one in five electric cars in Europe now built in the UK.
“The production of the electric MINI in the UK will play a key role in accelerating the adoption of cleaner, greener vehicles and I am delighted this modern British icon will be manufactured in Oxford.”