Members of East Riding of Yorkshire Council gave outline planning permission to Siemens’ plans for the facility in the town of Goole at a meeting last week.
Siemens' application included 5,000 square metres of offices, warehousing, a test track, car parking, servicing facilities and landscaping.
According to an officer's report, the site comprises undeveloped brownfield land within one of the council's "key employment areas" and is also part of the Humber Enterprise Zone.
The report, which recommended approval, said the development "will generate approximately 700 jobs", which "weighs in favour of this development on the overall planning balance".
It adds that the site is "well located in terms of access to the new link road, ‘Tom Pudding way’ and the M62".
Richard Burton, the Conservative leader of East Riding of Yorkshire Council, said: "As well as creating new skilled engineering and manufacturing roles, the multi-million-pound investment will also benefit the construction industry and then the supply chain, once operational, creating and supporting hundreds of jobs.
"The significant economic benefits for Goole, the East Riding of Yorkshire, the wider region and indeed the country as a whole generated by this project should not be underestimated."