Up to 4,000 jobs will be created in Britain with an investment of 4 billion pounds from Tata Group
- By 2030, UK battery production will meet half of the country’s needs
- Rishi Sunak, PM, says the factory shows how strong the UK’s car industry is
- In the country, 4,000 jobs will be created by the gigafactory
Jaguar Land Rover will be supplied with electric vehicle batteries by the Tata Group in the UK.
The government and Tata will invest 4billion pounds ($5.2billion) to build its first gigafactory outside India in the UK. The facility will create up to 4,000 jobs and have an initial output of 40GWh, according to plans announced Wednesday by the government and Tata.
Prime Minister Rishi Sunak’s government declined to say how much financial support it had pledged to secure investment and fend off Spain. Spain was also looking to win the project. The BBC has reported that the government will give Tata a subsidy worth hundreds of millions of pounds.
The UK lags behind European countries in building gigafactories for electric vehicle (EV) batteries. More than 30 are planned or under construction across the European Union. Nissan has a small plant in the UK, with another under construction.
“The Tata Group’s multi-billion dollar investment in the UK battery factory is a testament to the strength of our automotive industry and its workforce,” Sunak said in a statement.
Jaguar Land Rover’s UK plant is located near Birmingham in the center of England, while the new plant will be located in Somerset in the southwest.
A battery-electric model will be produced at the plant in 2026, including models for the Range Rover, Defender, Discovery, and Jaguar brands.
Domestic production is essential for automakers that manufacture large batteries close to car factories. The plant will have an initial output of 40 gigawatt-hours and supply almost half of its battery production needs by 2030. This is according to the UK. The Faraday Institute expects UK battery demand to exceed 100GWh annually by then.
Tata Group’s commitment to the UK is further strengthened by this strategic investment, said N. Chandrasekaran, Tata Sands chairman.
It was a shot in the arm
Mike Hawes, chief executive of British auto group SMMT, said the investment was a blow to Britain.
“As the industry moves toward electrification, we are at a critical juncture. Manufacturing batteries in the UK is essential if we want to establish broader car manufacturing in the UK in the long term. There is,” he said. Andy Palmer, former Aston Martin CEO and current chairman of battery maker Innovate, told BBC Radio that the UK needs government subsidies to remain competitive.
“Automotive industries in the majority of countries offer a number of incentives in order to maintain their health,” stated the official.
The UK has expressed concern over a US anti-inflation law that promises hundreds of billions of dollars in subsidies to green industries.
Treasury Secretary Jeremy Hunt earlier said the UK does not have much money to devote to similar subsidies. He will not look at economically sensitive issues, but the UK needs large projects.
“We compete with countries around the world for these huge investments,” he told the broadcaster.
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