Coventry will be the home of a national centre in developing the latest technology.
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The Government is investing £28 million to develop electric vehicle batteries.
A new centre will be based in Coventry, which ministers say will be a “stepping stone” to building a large-scale battery technology factory.
Business Secretary Greg Clark said: “The launch of this first local industrial strategy in the West Midlands is testament to the local civic and business leadership in the region, builds on its continued success to ensure every community across the region reaches their potential.
“Our funding for the UK Battery Industrialisation Centre in Coventry is a key part of this, and will see a world-class facility developed in this automotive heartland, further cementing opportunities, growth and inward investment in the West Midlands.”
Alan Jones is Press Association Industrial Correspondent.