The UK Government is poised to seal a deal with the car manufacturer owner Tata to build the gigafactory near Bridgwater, according to BBC reports.
It is reported that the £1bn car battery factory could get as much as £500m of public support.
It would be located at the Gravity business park, a 600-acre business park campus currently under construction near the M5 motorway at Puriton.
The UK was up against Spain as the potential site for the factory, which would rank as one of the biggest single-roof buildings in the country.
A decision in the UK’s favour would come as a relief for government which has been under pressure from car-makers to increase the capacity of battery production in Britain, amid fears car-making plants may leave for Europe.