Tata Group unveiled plans to construct a cutting-edge electric vehicle (EV) battery plant in the UK. The facility, set to be Tata’s first gigafactory outside of India, will supply Jaguar Land Rover (JLR) factories, marking a substantial step towards domestic battery production in the UK.
The investment, totaling £4 billion ($5.2 billion), is expected to create up to 4,000 job opportunities in the region, providing a much-needed boost to the workforce. With an initial output of 40 gigawatt hours, the plant aims to commence production in 2026 and will cater to JLR’s upcoming battery electric models, including the popular Range Rover, Defender, Discovery, and Jaguar brands.
The UK has faced challenges compared to its European counterparts in establishing electric vehicle battery gigafactories. While more than 30 such plants are under construction or planned in the European Union, Britain currently has only one small Nissan plant and another in development.
The UK government has been tight-lipped about the financial support provided to secure this investment, with reports indicating that subsidies worth hundreds of millions of pounds were offered to Tata Group, helping fend off competition from Spain, which was also vying for the project.
The new gigafactory, projected to be located in Somerset, southwest England, will prove pivotal for automakers, ensuring a steady supply of heavy batteries in close proximity to their production plants. According to estimates by the Faraday Institution, the factory’s initial capacity of 40 gigawatt hours will meet nearly half of the country’s battery demand by 2030. Demand for batteries is projected to exceed 100 GWh per year by that time.
Mike Hawes, head of the UK’s auto industry group SMMT, hailed the investment as a much-needed shot in the arm for the country, as the global auto industry accelerates its transition to electrification.
However, industry experts stressed that government subsidies would be crucial to maintaining the UK’s competitiveness in the sector. Various nations worldwide have offered substantial incentives to support their automotive industries, and Britain must also attract more significant projects to secure its position in the global market.
This strategic investment by Tata Group reinforces its commitment to the UK, as per N Chandrasekaran, Chairman of Tata Sons. The construction of the gigafactory is seen as a crucial step in helping automakers adhere to post-Brexit trade regulations, which demand sourcing more electric vehicle components locally to avoid tariffs on UK-EU trade from 2024.
The battery plant will undoubtedly play a pivotal role in the UK’s ambitions to achieve net-zero goals and its commitment to ban the sale of new petrol and diesel cars from 2030. With this massive investment, the UK aims to strengthen its position in the rapidly expanding electric vehicle market and secure its future as a key player in the automotive industry.