The vast 11m-high, L-shaped factory building designed by Associated Architects will almost double the size of the existing plant.
Construction of the 900,000 sq ft factory will take 18 months and employ up to 500 workers. It is also understood Severfield has won the huge steelwork contract.
Jaguar Land Rover received planning last month but only yesterday formally confirmed the building would be home to a new engine factory.
CEO Ralf Speth said: “We are proud to be such a significant investor in advanced manufacturing in Britain and are excited by this expansion and the new jobs it will create.
“The Engine Manufacturing Centre is a strategically significant facility for Jaguar Land Rover.
“The decision to expand our operations at the site provides a clear signal of our commitment to meeting customer demand for cleaner and more efficient engines, whilst developing the skills and capability that Britain needs if it is to remain globally competitive.”