Jaguar Land Rover owner Tata is spending £4 billion on a flagship electric car battery factory in the UK, following uncertainty about whether the deal would go to Spain instead.
The government expects the new gigafactory to create up to 4,000 jobs, and to provide almost half the battery production needed by 2030 – in a move that should boost the UK’s switch to zero emissions vehicles.
The new factory, which will be one of the largest in Europe at 40GWh, will secure UK-produced batteries for Jaguar Land Rover, as well as other car manufacturers across Europe.
Prime minister Rishi Sunak said he was “incredibly proud” of the move and described the investment as “testament” to the strength of the UK car manufacturing industry and its “skilled workers”.
He added that: “with the global transition to zero emissions vehicle 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.”
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Tata Sons chairman Natarajan Chandrasekaran said: “The Tata Group is deeply committed to a sustainable future across our business. Today I am delighted to announce the Tata Group will be setting up one of Europe’s largest battery cell manufacturing facilities in the UK”.
“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, Jaguar Land Rover.
He added: “With this strategic investment, The Tata Group further strengthens its commitment to the UK”.
However, FairCharge’s founder Quentin Wilson told the BBC that there were industry concerns that Tata’s investment might “sweep up” all available government support for electric vehicle manufacturers.
The news follows much criticism about the UK’s approach to green jobs and achieving net zero, amid fears that the UK could be falling behind other countries such as the US on issues like green jobs.
It is hoped the new factory will help the UK hold its position in the increasingly important electric vehicles market.
