Tata Motors, JLR owner, is investing £500 million to upgrade a factory in the UK to make electric SUVs

Jaguar Land Rover plans to invest £500 million (about $669 million) to upgrade one of its factories in England, preparing it to produce electric SUVs.

The company that makes Range Rover and Land Rover vehicles has already invested £250 million in its Halewood plant near Liverpool in the past year. They announced on Thursday that they plan to double that investment in the coming years, and confirmed that this facility will eventually be the first to produce only electric vehicles.

Last month, JLR warned that their transition to electric vehicles will be more expensive than they first thought, due to low consumer demand and the need to continue developing traditional and hybrid models for a longer time. Now, the company, owned by Tata Motors, plans to invest £18 billion over the next five years to offer electric options for all its models by the end of the decade.

Car manufacturers in Europe are slowing down their electric vehicle plans due to decreasing consumer demand and cuts in government subsidies in countries like Germany and Sweden. Earlier this month, Volvo Car AB dropped its goal to sell only fully electric vehicles by 2030, similar to Mercedes-Benz, which also stepped back from that target in May.

The Halewood factory was opened by Ford Motor Co. in 1963 and has been producing important vehicles for JLR, like the Range Rover Evoque and Discovery Sport. The factory is preparing to start making medium-sized electric SUVs, alongside traditional and hybrid models.

JLR hasn’t announced when they will stop making hybrid or combustion engine-only vehicles at the Halewood factory. In February, the company said they reduced the number of fully electric Land Rover models they plan to release by 2026 from six to four.