Tata Sons is set to build a £4bn gigafactory in the UK, believed to be one of the biggest investments in the country’s car industry.
The Somerset facility will produce sustainable cells and battery packs for use in the mobility and energy sectors, for customers in the UK and Europe. The “anchor customers” will be Jaguar Land Rover (JLR) and Tata Motors, both part of the Tata group of companies.
The government said the investment would create up to 4,000 new direct jobs, as well as “thousands more in the wider supply chain”. Production is expected to begin in 2026, with the ambition to produce 40 GW of cells annually and use “100% clean energy”.
The battery production industry has been seen as a high-value growth area for contractors, but key figures said in May that the UK was running out of time to get the industry up and running.
ISG-led construction of a £3.8bn gigafactory in Northumberland was halted earlier this year after its developer Britishvolt went into administration.
The Australian company that later bought Britishvolt said in February it wanted to restart the project “as soon as possible”, but last month the BBC reported that the owner’s offices had been raided by police.
Wates is also building a £450m gigafactory in Sunderland, its biggest ever project, while Mace chief executive Mark Reynolds recently said Construction news that his company was targeting gigafactory work, including a large project near the UK.
The Tata factory announcement follows months of negotiations. The BBC reported that up to £500 million in government grants and subsidies had been offered to “get the deal done”. The government said details of the support provided to Tata Sons “will be released in due course”.
Tata Sons chairman Natarajan Chandrasekaran said the establishment of one of Europe’s largest battery cell manufacturing facilities in the UK would “bring state-of-the-art technology to the country, helping driving the transition of the automotive sector towards electric mobility, anchored by our own business, Jaguar Land Rover”.
Prime Minister Rishi Sunak said: “The Tata Group’s decision to build its new gigafactory here in the UK, its first outside India, is a huge vote of confidence in the UK. This will be one of the most biggest ever in the UK motor industry.
“Not only will it create thousands of skilled jobs for Britons across the country, it will also strengthen our leadership in the global transition to electric vehicles, helping to grow our economy in the clean industries of the future.”
Energy security secretary Grant Shapps said: “We have done it [been] working tirelessly with business and across government to argue why the UK is the best place to be [Tata] invest
“This new gigafactory puts us firmly on the fast track to becoming the electric car market capital of Europe.”
On Twitter, shadow business secretary Jonathan Reynolds said: “I welcome any investment in British jobs and industry and this decision vindicates Labour’s demand for an active industrial strategy.
“Despite the government’s tactical approach, this shows the strength of the UK car industry. We should be ambitious for more.”
