The UK government has confirmed a £380 million grant for Tata's battery factory in Somerset, which will supply Jaguar Land Rover (JLR) with electric vehicle batteries. The announcement was made by Business Secretary Peter Kyle during a visit to the construction site in Bridgwater.
The gigafactory, operated by Tata's subsidiary Agratas, is expected to create 4,200 long-term jobs. Tata had previously indicated the project would require up to £4 billion in investment, with a portion funded by the government. However, construction has faced delays, and production, initially planned for 2026, is now unlikely to start before the end of 2027.
The factory will be the UK's second high-volume battery facility, with an annual capacity of 40 gigawatt hours, enough for hundreds of thousands of cars. The other facility is AESC's plant in Sunderland. Agratas has scaled back the first building's footprint due to more efficient processes, but maintains planned output remains unchanged.
JLR has delayed the launch of its electric Range Rover, originally set for 2025, partly due to weaker-than-expected consumer demand for EVs. The UK government's relaxation of electric car sales targets has also reduced pressure to rush the vehicle to market. Meanwhile, rising petrol prices, influenced by global events, could boost EV attractiveness.
Kyle stated the investment would boost economic growth and secure jobs. Agratas vice-president Earl Wiggins welcomed the funding, noting it supports the facility's development and its role in delivering net zero targets. Before the Somerset plant is operational, JLR will source batteries from AESC, though details of that deal remain unclear.
