The new research project, Tucana, will focus on lighweighting technology, delivering stiffer and lighter vehicle structures.
The programme will aim to develop cost effective, scalable carbon fibre composite products, with the view to boosting the performance of electric vehicles.
WMG will receive £4m of the government funding through the Advanced Propulsion Centre (APC).
Over all, the project will create 518 new jobs and safeguard 50.
Tucana brings together a consortium of academic and industry partners led by Jaguar Land Rover, Expert Tooling & Automation Limited, Broetje-Automation UK, Toray International UK, CCP Gransden and Magna Exteriors (Banbury).
Prof Lord Bhattacharyya, chairman and founder of WMG, said:
"It is vital that research and development, in the automotive sector, supports the UK’s Industrial Strategy and the move towards increasing the number of electric vehicles.
"I am delighted that WMG’s contribution to the project will help in establishing a world class UK supply chain for materials and manufacture for the lightweighting of vehicles."
Prof Gero Kempf, chief engineer, Jaguar Land Rover, added:
"With the grant awarded to Project Tucana, we can take an industry leading role in the development of next generation technologies specifically, lightweight body structures.
"Together with industry experts and academia we will collaboratively deliver innovative carbon fibre solutions, achieving a performance that will further enhance driver experience for future premium electric vehicles."