Prime minister David Cameron has confirmed Nissan's car plant in Sunderland will still get a £20 million grant promised by the Labour government.
There had been fears the money, which had been promised as part of an effort to secure a contract for the Nissan Leaf to be built in Sunderland, could be pulled as part of a review into public spending.
"That money will be going ahead, that investment will be going in," Conservative leader Cameron told parliament.
Last week, Cameron had said he wanted electric cars to be built in Britain but wouldn't confirm if the Nissan grant would stand.
Nissan Leaf production will begin in Sunderland in 2013.