Confirmed: Jaguar owner Tata to build £4bn battery factory in the UK

Jaguar Land Rover’s owner has confirmed it will build a £4 billion pound gigafactory in the UK, in a major boost for the British automotive sector and following months of speculation.

Tata Group – the Indian conglomerate who have owned JLR since 2008 – said that its investment in the new 40GWh battery plant will create 4,000 direct jobs and represents one of the largest ever in the UK auto industry.

The giant Somerset-based gigafactory will provide almost half of the battery production needed by 2030, when a ban on the sale of new petrol and diesel cars comes into place.

It represents a major win for Britain’s hard-pressed motor sector, which has repeatedly warned that the government is not doing enough to secure its position in the global race to transition to electric vehicles (EVs).

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.”

“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.”

Tata’s chair, Natarajan Chandrasekaran, said: “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.”

The UK government had been locked in a battle with Spain to host the plant, with Tata reportedly asking for £500 million in state assistance.

Confidence had been growing that it would pick Somerset over Spain, with reports in late May that the Mumbai-based group’s chair was to fly to the UK to finalise a deal.

However, nearly two months of silence had left those in the industry quietly concerned over the state of Britain’s bid, which was seen as pivotal in shifting the countries’ fortunes in the EV market and boosting its flagging battery making capacity.

The deal’s confirmation today means the UK now has two gigafactories on the cards, with the other operated by the Chinese company Envision in Sunderland, to supply the Japanese carmaker Nissan.

It comes just over six months after the failure of Britishvolt, the Northumberland battery plant startup which collapsed in January despite a £100 million government grant.

Tata’s decision still leaves the UK far behind the European Union, which as of early June had 25 gigafactories in operation, under construction or planned.

Business and Trade Secretary Kemi Badenoch said: “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.”