The firm, which already makes the Leaf electric car in Sunderland, may also announce the launch of a brand new electric model.
The government is contributing to the overall cost of the project, which is expected to cost hundreds of millions.
The size of the government contribution has not been disclosed.
As a person familiar with the deal put it, the government announced a ban on the sale of new petrol and diesel cars from 2030, so it was prepared to support the transition.
It is hoped the new plant will be producing batteries in time for 2024 when the level of UK-made components in UK-made cars is required to start increasing in line with the terms of the UK's trade deal with the European Union - where most of Nissan's Sunderland-assembled cars are sold.
Industry sources expect the scale and size of the new facility may closely match that of a new facility in Douai, France recently announce by Renault - which is a major shareholder in Nissan and a partner in a global manufacturing alliance.
The government is also in talks with Vauxhall to secure production of electric vehicles at its Ellesmere Port plant. The BBC understands those talks are "going positively" and an announcement is expected in the next few weeks.