The UK is set to win a battle with Spain to host a multi-billion-pound electric car battery plant.
The BBC says the boss of Jaguar Land Rover owner Tata is expected to fly to London next week to finalise the deal.
Some in the car industry have described the proposed gigafactory as the most significant investment in UK automotive since Nissan came to Britain in the 1980s.
Sources familiar with the matter say that, although the deal has yet to be signed, engagement has moved from negotiations to drafting and choreography of how the landmark agreement will be presented.
Up to 9,000 jobs would be created at the Bridgwater site in Somerset, close to the M5.
The UK Government has acknowledged the urgent need for electric vehicle battery manufacturing in the UK to secure the future of the car industry.
Huge automotive sector
The country's automotive sector employs up to 800,000 people directly and in the supply chain.
When pressed on the subject last week, Chancellor Jeremy Hunt told the BBC to "watch this space".
Tata was considering another site in Spain, and the expected decision to choose Somerset will be presented as a major achievement for the UK Government.
It has been criticised for lacking a clear industrial strategy and falling behind the US and EU in attracting investment.
Last week one of the world's biggest carmakers, Stellantis, warned it may have to close UK factories if the government does not renegotiate the Brexit deal. The firm, which owns Vauxhall, Peugeot, Citroen and Fiat, had committed to making electric cars in the UK but told the BBC this was under threat.
In the case of Tata's new plant, the UK's expected success has not been easily or cheaply won.
Massive subsidies
The government has said that, while it does not recognise a figure of £500million in reported subsidies, it conceded that it is in the hundreds of millions of pounds.
This would take the form of cash grants, energy subsidies and other training and research funding.
India's Tata has extensive steel interests in the UK including the Port Talbot plant in South Wales, and the government will also offer around £300million to subsidise, upgrade and decarbonise those operations.
Along with additional energy discounts, it will bring the total incentive package to Tata close to £800million.
Government sources conceded that, while the two investments will not be announced at the same time, the two projects are linked.
Some industry insiders hope that the Tata battery investment will open the door to further similar sites in the UK, which currently only has one plant in operation next to Nissan's Sunderland factory, and one barely on the drawing board in Northumberland.
EU plants
By contrast the EU has 35 plants open, under construction or planned.
Tesla boss Elon Musk revealed earlier this week that the firm will “strongly consider” building its next gigafactory in Britain.
He said his electric car company was preparing to look for a location to build a new battery factory later this year and would assess England as an option.
FTSE 100
The UK's top share index, the FTSE 100, was down 26 points at 7,600 shortly after opening this morning, following yesterday's 135-point loss. The index fell on Wednesday after the unexpectedly-strong British inflation figures.
Brent crude futures were 0.15% lower at $78.22 a barrel.
Companies reporting today
- Full-year results: Johnson Matthey, Tate & Lyle, United Utilities
- Fourth-quarter results: Pets at Home