Jaguar Land Rover has received a £500 million loan guarantee to develop electric vehicles (EV) from the Prime Minister.

The announcement, which Theresa May made at 10 Downing Street during an automotive roundtable event earlier this week, will mean the car giant can more easily secure loans, credit and direct funding to support the design and production of zero emission vehicles.

The fund is not a loan in itself and instead has the purpose of backing up any loans Jaguar Land Rover takes out, meaning that if it were to default on them, they would be paid out by the government – it has been issued by UK Export Finance

It will come as welcome news to the firm, which earlier this month unveiled plans to manufacture a range of new EVs at its plant in Castle Bromwich in the UK.

Jaguar Land Rover has launched what it claims is the largest smart charging facility for EVs in the UK.