In a major development, Tata Group has announced that it will establish a battery cell gigafactory in the UK.
“Today, I am delighted to announce the Tata Group will be setting up one of Europe’s largest battery cell manufacturing facilities in the UK,” said N Chandrasekaran, Chairman of Tata Sons, adding that the Group is deeply committed to a sustainable future across its businesses.
“Our multi-billion pound investment will bring state-of-the-art technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, Jaguar Land Rover,” the Chairman added.
Though Tata has by far not revealed the size of the investment, a UK Government statement billed it to be over 4 billion pounds (over £4 billion).
The new gigafactory, at 40GWh, will be one of the largest in Europe and will create up to 4,000 highly skilled jobs, as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals, said the UK Government release.
“We can be incredibly proud that Britain has been chosen as home to Tata Group’s first gigafactory outside India, securing our place as one of the most attractive places to build electric vehicles,” said UK Prime Minister Rishi Sunak.
“With the global transition to zero-emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology whilst creating as many as 4,000 jobs, and thousands more in the supply chain,” UK Prime Minister Rishi Sunak said.
“Tata Group’s multi-billion-pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and its skilled workers,” UK Prime Minister Rishi Sunak added.
Production at the new gigafactory is expected to start in 2026, the UK said.
“Details of Government support to Tata Sons will be published in due course as part of our regular transparency data,” the release added.
Tata Group is already operating in the UK across technology, consumer, hospitality, steel, chemicals, and automotive.
“This is a great news and an opportunity to deepen the India and the UK partnership and the huge contribution which Tata Group makes to it (sic),” British High Commissioner to India Alex Ellis wrote on his Twitter timeline.
The new plant is expected to be built in Somerset, south-west England, while Jaguar Land Rover’s UK factories are based near Birmingham, central England.
Production at the factory, which is set to supply JLR’s future battery electric models, including the Range Rover, Defender, Discovery and Jaguar brands, is due to start in 2026, the Government said.
Domestic production is vital for automakers which rely on heavy batteries being built near their car plants.
With an initial output of 40 gigawatt-hours, Britain said the factory would provide almost half of the battery production needed by 2030. The Faraday Institution has projected UK battery demand to reach over 100 GWh a year by that time.
The Department for Business and Trade said details of the Government’s incentives and support provided to the Tata Group as part of the agreement will be published in due course as part of regular transparency data. Reports in the lead-up to the announcement had indicated that subsidies in the form of grants, energy subsidies, and other training and research funding would be part of the agreed package. “Today’s multibillion-pound investment demonstrates that this government has got the right plan when it comes to the automotive sector,” noted UK Business and Trade Secretary Kemi Badenoch.
“We are backing the UK car industry to help grow our economy as we transition to electric vehicles, and this latest investment will secure thousands of highly-skilled jobs across the country,” UK Business and Trade Secretary Kemi Badenoch said.
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