Tata, the owner of Jaguar Land Rover, has confirmed plans to build a flagship electric car battery factory in Somerset, UK. The new gigafactory near Bridgwater is expected to create 4,000 jobs directly and thousands more in the supply chain. Tata will invest £4bn in the site, with the government providing subsidies worth hundreds of millions of pounds.
The plant, described as the most important investment in UK automotive since Nissan arrived in the 1980s, will be one of the largest in Europe. Production is due to start in 2026, initially making batteries for Jaguar Land Rover vehicles such as Range Rover, Defender, and Jaguar brands, with plans to supply other manufacturers.
Prime Minister Rishi Sunak said Tata's decision was based on a range of factors, including tax cuts and investments in skills, infrastructure, and regulation after leaving the EU. The government confirmed a 'large' incentive package, likely including cash grants, energy cost discounts, and training and research funding.
The investment has been welcomed by politicians and industry bodies. Liberal Democrat Treasury spokesperson Sarah Olney said it came 'after years of the south west being neglected by government investment'. The Society of Motor Manufacturers and Traders (SMMT) said the investment was critical for the UK's transition to electrification.
However, critics have noted the UK's lack of a clear industrial strategy compared to the US and EU. Unite union general secretary Sharon Graham called for a strategic long-term industrial plan and for the factory to use UK-made steel. The UK currently has only one operational battery plant, while the EU has 35.
Parliament's Business and Trade Committee is investigating the UK's electric vehicle battery sector. Chairman Darren Jones welcomed the decision but raised questions about the subsidy package's scalability. FairCharge, representing electric vehicle companies, echoed these concerns.
