Tata Group has secured £500m worth of Government incentives to deliver a £4bn gigafactory for electric vehicle battery production
Tata Group will construct their first gigafactory outside of India, as the group secures a £4bn project to deliver electric vehicle charging to thousands across the UK.
The Somerset based factory will provide an estimated half of the UK’s battery production needed by 2030.
The UK currently only has one gigafactory in operation, located as part of the Nissan electric vehicle hub in Sunderland, whilst another fell into limbo when original developers Britishvolt failed to secure funding for the project.
Australian portfolio company Recharge Industries secured a takeover bid for the firm and project in February of this year, but progress has since seemingly stalled.
It will produce batteries for Tata-owned Jaguar Land Rover as well as other manufacturers in the UK and Europe.
Production at the new £4bn gigafactory is due to start in 2026
Tata, which owns Jaguar Land Rover, has already commissioned batteries for electric vehicles from the gigafactory.
Mr N Chandrasekaran, chairman, Tata Sons, said: “The Tata Group is deeply committed to a sustainable future across our business.
“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, JLR.
“With this strategic investment, the Tata Group further strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive.”
Industry experts warned that a diverse market was needed for successful implementation of electric vehicles
Dr Andy Palmer, founder/CEO of Palmer Automotive, said: “As a long-time advocate for government support of the nascent UK battery industry, I, like any sensible onlooker, welcome the news. However, I also air caution and so should the industry.
“If UK dishes out the bulk of its battery-related support to one brand, then we still face likely car industry armageddon. Support must come in all shapes and sizes for businesses of all shapes and sizes. One gigafactory doesn’t equal success, it equals part of the puzzle. We need a harmonious, collaborative, strategic industrial strategy that lifts all boats. Or the tide will sweep the UK automotive sector into the deep abyss.”
The government was swift to praise itself for the deal
Business and trade secretary Kemi Badenoch commented: “Today’s multibillion-pound investment demonstrates that this government has got the right plan when it comes to the automotive sector. 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.”
Rishi Sunak said: “Tata Group’s multibillion-pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and its skilled workers.”
The prime minister added: “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.”
