The 24-hectare automotive business zone in Whitley, near Coventry, is aimed at attracting local manufacturers and supply chain firms from next year.
The site is being developed with another £10m support from Coventry and Warwickshire Local Enterprise Partnership, Warwick District Council and Coventry City Council.
Business and Energy Secretary Greg Clark said: "Our world-class auto sector is leading the way and this new development will create thousands more skilled jobs. It shows how private and public sector can work together to make a difference to the economy."
The new funding will also be used to improve local transport links, connecting the site with the A45, and constructing a new bridge to join the new development with an existing Jaguar Land Rover engineering centre.
Speaking ahead of a visit to Coventry-based advanced manufacturing company AMT Expert, Business Minister Margot James added: "The resurgence of advanced manufacturing and the automotive industry in the West Midlands is a real success story.
"It's vital we maintain this momentum and keep creating high-skilled jobs and don't let any opportunity slip through our fingers. Today's £35 million investment unlocks land that will help to cement the region as a leading destination for investment."
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