The firm, best known for its vacuum cleaners, will expand its facilities at the former Hullavington Airfield in Wiltshire with more than 10 miles of test track.
Billionaire inventor James Dyson, a prominent Brexit advocate, hopes to launch the new venture by 2021 . The firm also plans to build office buildings for more than 2,000 staff that will eventually be employed at the site.
Dyson has already restored two hangars dating from 1938, where 400 employees now work.
In the next phase of development at the 750-acre site, the company is proposing to build tracks to put battery-powered vehicles through their paces, including handling and stability, off-road driving, a skid pan and a high speed runway for speeds above 100 miles per hour.
Sir Dyson, 71, has not yet revealed any details or a prototype of the electric vehicle, but it is expected to be aimed at the upper end of the market.
Jim Rowan, Dyson’s chief executive, predicted that Hullavington would soon become a "world-class vehicle testing campus".
"We are now firmly focused on the next stage of our automotive project strengthening our credentials as a global research and development organisation," he said.
