BMW is expected to announce a £500m investment into its Oxford plant that will secure the future of the production of Mini in Britain.

According to Sky News, BMW hopes to make the announcement this Spring with one source confirming £75m coming from the UK government's Automotive Transformation Fund.

It was reported last month that BMW was in talks with the government over the funding to ensure electric Mini production at the Cowley plant continues.

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BMW said they did not respond to “media speculation” but added they will build the majority of next-generation Mini models in Oxford.

A BMW spokesperson said:  "With its high degree of flexibility, competitiveness and expertise, the Oxford plant plays an important role in the BMW Group's production network.

"For the next MINI generation, Oxford will produce the majority of MINI models, the MINI Cooper three-door and five-door models, as well as the MINI Convertible - one of our most important vehicles and a worldwide bestseller."

Last October, BMW said the production of its hatchback and small SUV electric Minis would move to China.

At the time, a spokesman for the firm insisted that its Cowley plant would “remain at the heart of Mini production” and there would be “no impact on jobs”.

BMW said its electric hatchback and small SUV Minis will start being built in China.

This year, the electric Countryman has started being made in its factory in Leipzig, Germany.

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The Mini Cooper SE Convertible is also produced abroad alongside the conventional MINI Convertible in the Netherlands.

New cars and vans powered wholly by petrol and diesel will not be sold in the UK from 2030.

The first electric Mini rolled off the production line at Cowley in 2020, and the then Prince of Wales visited the Oxford plant the following year to take the wheel of an electric model.

BMW makes 40,000 electric Minis per year at its Cowley factory.

In the last year, Nissan and Ford have both announced new investments in their UK facilities, with the latter saying in December that it would spend £150m at its Halewood plant in Liverpool to expand production of electric vehicle parts.

Last month, a government spokesman told Sky News: "The UK is one of the best locations in the world for automotive manufacturing.

"Investment through the Automotive Transformation Fund will develop a high-value end-to-end electrified automotive supply chain in the UK, and this includes unlocking private investment in gigafactories.

"We're also working with industry through the Automotive Council's Skills Working Group to ensure the UK automotive industry can support and develop the skills needed for sustainable success."