"Singapore also offers access to high-growth markets as well as an extensive supply chain and a highly skilled workforce", Dyson CEO Jim Rowan told employees in a letter.
Chief executive Jim Rowan confirmed the location of the factory just over a year after Dyson, best-known for its bag-less vacuum cleaners, announced its £2bn plan to build an electric auto.
"I am delighted to let you know that the Dyson Board has now decided that our first automotive manufacturing facility will be in Singapore".
Dyson is investing more than £2bn on developing an electric vehicle, and in August revealed plans to spend £200m building test tracks for cars at a former wartime airbase near the company's Wiltshire headquarters.
Details of the plan are still reasonably scarce, but according to the Financial Times, Dyson will spend £2bn developing battery technology and vehicle construction.
"Our RDD teams at both the Singapore Technology Centre and the Advanced Manufacturing Centre have developed world-leading knowledge and represent Dyson at its best", Rowan said.
The UK technology firm, founded by the Brexit-supporting entrepreneur and inventor Sir James Dyson, said its decision reflected the worldwide nature of its business including its supply chain despite high operating costs. "It is therefore the right place to make high-quality technology loaded machines, and the right place to make our electric vehicle", he said. The company already has 1100 employees in the area, including engineers and production workers making device motors.
According to the FT, Dyson is bullish that Brexit isn't to blame for taking the EV's manufacture overseas.
Dyson plans to utilise what it's learned making vacuum cleaners with "switched reluctance" electric motors and apply that to cars.
But it comes despite billionaire chairman and founder Sir James Dyson being one of the loudest business backers of Brexit and who has claimed it was a unique chance to "supercharge" the economy.