Jaguar Land Rover has secured a £500 million loan guarantee backed by the government’s export credit agency UK Export Finance (UKEF).

The UKEF guaranteed 80% of a new £625 million loan from 12 banks, under its Export Development Guarantee programme designed to drive investments into UK exporters.

The loan is expected to support the car manufacturer’s plans to spend about £2.5 billion a year, expected to reach £3 billion by March 2026, to increase the number of battery electric vehicles (BEVs) in its portfolio.

Anne-Marie Trevelyan, Secretary of State for International Trade, said: “We are backing our ambitious net zero plans with more concrete action. We want our carmakers to accelerate the production of EVs in the UK.”

Adrian Mardell, Jaguar Land Rover’s Chief Financial Officer, commented: “This will help support the significant investment in our transition to offer a fully electrified product portfolio and to achieve our target of net zero carbon emissions by 2039.”