Nissan is pumping £200 million into its electric battery factory.
The firm is putting the funding into the Sunderland plant which makes these items, creating as many as 350 jobs in the process, which could result in eco-friendly cars being made in the area.
Gordon Brown said of the decision: "Nissan’s investment in a new battery plant and its hope to start producing electric vehicles here in Sunderland is great news for the local economy."
He added that the north-east town could now be a "strong contender" to produce the carmaker’s electric vehicles.
It is thought that the plant could manufacture as many as 60,000 lithium-ion batteries each year.
Meanwhile, Toyota has confirmed its plans to produce a hybrid car in Britain.
The manufacturer will build its petrol-electric Auris at a Welsh plant in Deeside and a base in Burnaston.
According to Toyota, production of the hatchback vehicles will begin by the middle of next year.
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