It will bring together its steel fabrication and lightweight structures operations.
The two operations are currently located at Vulcan Road, Norwich and Worcester respectively, and in bringing the two together 125 new jobs will be created.
The company's 12,300 metre squared Hurricane Way factory will be converted into a new high tech sub-assembly facility to house both departments, which build parts for both Lotus and other carmakers.
Lotus will also upgrade its machining and tooling to prepare the company for future models as well, signifying continued investment for the company from its new Chinese owners.
"By bringing the aluminium chassis and steel sub-assembly manufacturing businesses together into one facility, we can further improve upon efficiencies and productivity for Lotus manufacturing," said David Hewitt, executive director of operations at Lotus. "Being located close to Lotus’ HQ in Hethel, Norfolk where all Lotus cars are assembled, will also benefit the business as we expand further into the future.”
The move was aided by the New Anglia Local Enterprise Partnership and Norwich City Council.
"We are delighted to have helped Lotus complete this deal to develop a new production facility in Norwich," said Chris Starkie, chief executive of the New Anglia Local Enterprise Partnership. "It underlines the commitment of this globally-recognised brand to the county with which it is synonymous, and reinforces our region as a centre of excellence in low volume, high-tech manufacturing.
"The New Anglia Local Enterprise Partnership will also be supporting a training programme aimed at upskilling existing staff and providing technical apprenticeships, ensuring this region has the skills that are needed in its key sectors."
Alan Waters, leader of Norwich City Council, added: "Lotus is a truly iconic brand, all over the world. But here in Norwich, and the county as a whole, we’ve long enjoyed a sense of local pride and ownership thanks to the business being based in different parts of the region for many years."
"We’re delighted the company has shown its continued and deepening commitment to Norwich by choosing the Hurricane Way site as a new base for the high-tech manufacturing element of the business.
"The potential of dozens of new jobs in the pipeline also comes at a particularly welcome time as we continue to grapple with the effects of the pandemic. We very much look forward to continuing to work with Lotus as the new facility gets up and running."