- Tata confirms construction of flagship electric car battery factory in the UK
- Gigafactory to generate thousands of jobs and supply batteries for Jaguar Land Rover vehicles
- Government offers incentives and subsidies to attract investment, calls for a comprehensive industrial strategy
Jaguar Land Rover owner Tata aims to build its flagship electric car battery manufacturing in the UK.
The Somerset facility will employ 4,000 UK workers and thousands more in the supply chain.
Tata will invest £4 billion in the site, but the government may subsidise hundreds of millions of pounds.
The facility is Britain’s largest automotive investment since Nissan’s 1980s entrance.
Jaguar Land Rover’s Range Rover, Defender, and Jaguar batteries will be made at Europe’s largest gigafactory at Bridgwater.
In addition, the new factory’s production is scheduled to begin in 2026 and will supply other automobile manufacturers.
Tata has negotiated for months to secure state aid for the project, and the government confirmed on Wednesday that Tata has been promised a “large” incentive to locate the plant in the United Kingdom. The subsidies will likely take the form of financial grants, energy cost discounts, and funding for training and research.
However, according to Prime Minister Rishi Sunak, Tata’s decision was influenced by a wider spectrum of factors.
Tata is a multinational corporation that will consider a variety of factors when determining where to invest. Last autumn, the chancellor slashed taxation so that we could make investments like this, he said.
“We’re making several changes, and the whole package is appealing, including investments in skills and apprenticeships, road, rail, and broadband infrastructure.
“It’s also the approach we’re taking towards regulation after leaving the EU,” he added.
Liberal Democrat Treasury spokeswoman Sarah Olney applauded the decision, stating that it came “after years of the southwest being neglected by government investment”
According to the Society of Motor Manufacturers and Traders, the investment came at a crucial moment for the United Kingdom.
Mike Hawes, chief executive officer of the Society of Motor Manufacturers and Traders (SMMT), stated that the production of batteries in the United Kingdom is crucial to the long-term viability of the country’s automotive industry.
Industrial strategy
A significant proportion of the value of an electric vehicle is typically accounted for by the battery. So a reliable supply is anticipated to be crucial for the future of the UK automobile industry.
However, the government has been criticized for lacking a distinct industrial strategy and falling behind the United States and the European Union in attracting investment in low-carbon technologies, such as battery production.
Sharon Graham, general secretary of Unite, stated, “The United States and Europe have clear, proactive strategies for employment and investment. We cannot remain perpetually behind.”
She stated that the government should seize the opportunity to establish a “strategic long-term industrial plan” and mandate that the new factory be built with steel produced in the United Kingdom.
Some industry insiders believe that Tata’s battery investment will pave the way for additional battery investments in the United Kingdom.
Only the Nissan plant in Sunderland and a Northumberland plant under construction are in operation in the UK.
Britishvolt, a proposed battery manufacturer in the north-east of England, fell bankrupt earlier this year.
In contrast, the European Union has 35 facilities operational, under construction, or planned.
Shadow Business Secretary Jonathan Reynolds applauded Tata’s new plant, adding that Labour would ensure that “announcements like this are not a one-off, but the foundation of a growing economy, with good jobs in our industrial heartlands.
Help for steel
Tata owns Jaguar Land Rover and the Port Talbot steel factory in Wales. The government is also anticipated to offer approximately £300 million to subsidize, upgrade, and decarbonize these operations.
The cross-party Business and Trade Committee of the British Parliament is investigating the electric vehicle battery manufacturing industry.
Its chairman, Darren Jones, stated that Tata’s decision to locate the new facility in the United Kingdom was “very welcome” but he questioned the magnitude of the subsidies provided.
“We will want to reflect… on the subsidy package that was required to secure this decision and whether or not this approach is scalable to meet the demand for additional battery manufacturing sites for other automakers across the United Kingdom.”
The FairCharge group, which represents other corporations in the electric vehicle industry, echoed these concerns.
The founder of FairCharge, Quentin Willson, expressed concern that Tata’s investment could “sweep up” all available government support.
“I truly hope that other companies in the battery, critical minerals, charging, and EV supply chains won’t be neglected,” he said.
Andy Palmer, now with EV charging business Pod Point, said the UK needed a “lift all boats” industrial policy.
“Support must come in all shapes and sizes for businesses of all sizes,” he stated. One gigafactory does not equate to success; rather, it represents a piece of the puzzle.
