The company will establish its new 55,000 sq ft, two-storey facility on Team Valley, less than 200 yards from its existing site on Kingsway.
It will be used for office space and software development, while a single-storey is set to house the testing of prototypes.
The move, which was approved by Gateshead Council, will support Sevcon's plans to create 200 new jobs by 2019.
It will also free up the company's current premises for further development.
Matt Boyle, president and chief executive at Sevcon, said: "The new premises will provide us with the facilities and space to achieve the next stage of our growth strategy.
"We will be investing heavily in the new offices and testing facilities and hope to be up-and-running by the summer."
Sevcon was supported by commercial property agency Gavin Black and Partners, as well as Newcastle firm Square One Law in securing the site.
Boyle added: "We had outgrown our existing premises, where we have been based for over 50 years, and were keen to stay on the Team Valley as it is an ideal location, with good transport links."