The Government Office for Yorkshire and Humberside has today lifted a stop notice it had issued which blocked full planning permission from being granted last week.
Building work on foundations for the 65,000m2 plant, which will employ up to 1,300 staff, are set to begin next Wednesday (7 July).
Mike Young, Polestar project manager for the plant, said: "It's excellent news. My greatest compliments to Sheffield City Council and the local MPs who have been tireless in lobbying parliament to get this done."
Young reported that local Labour MP Clive Betts had asked a question in the House of Commons to Peter Hain, Leader of the House, "insisting that this got resolved immediately."
Young added: "There's been a great deal of pressure behind the scenes by everyone involved, and we managed to unblock it today. We thought it would be just a short delay and it's great news."
It emerged on Monday that Polestar had threatened to pull out of Sheffield altogether if the permission was not granted within a week.
Story by Josh Brooks