The Jaguar Land Rover company has committed to launching electric models of its entire line-up by 2030, with all three of its British plants remaining open as part of the change in strategy.
In a press release, the firm said: "By the middle of the decade, Jaguar will have undergone a renaissance to emerge as a pure-electric luxury brand with a dramatically beautiful new portfolio of emotionally engaging designs and pioneering next-generation technologies.
"Jaguar will exist to make life extraordinary by creating dramatically beautiful automotive experiences that leave its customers feeling unique and rewarded."
However, the company no longer has plans for an electric version of the XJ saloon, which means the Castle Bromwich plant will eventually stop making cars.
They added: “Although the nameplate may be retained, the planned Jaguar XJ replacement will not form part of the line-up, as the brand looks to realise its unique potential.”
Chief executive Thierry Bollore revealed the site will instead concentrate on "non-production activities as a long term plan, but he didn't expand on this.
It's said the company is looking to spend around £2.5 billion a year on new technology for its vehicles.
Responding to the announcement, Transport Secretary Grant Shapps said Jaguar's move is "a huge step for British car manufacturing".