Tata Group to launch £4bn gigafactory in Somerset

In a groundbreaking development for the UK car industry, the Indian multinational conglomerate, Tata Group, which owns Jaguar Land Rover (JLR), has confirmed its plans to invest £4bn to construct a battery 'gigafactory' in Somerset. This move is poised to secure the UK’s position as a significant player in the global shift to electric vehicles.

The new gigafactory, set to produce 40 gigawatt hours (GWh) of batteries annually, will provide a power source for hundreds of thousands of electric cars. The factory, one of the largest in Europe, will make batteries for well-known JLR models, such as the Range Rover, Defender and the Jaguar brands. The project marks the most consequential investment in the UK automotive industry since Nissan's arrival in the 1980s.

“This is testament to the strength of our car manufacturing industry and its skilled workers,” declared Prime Minister Rishi Sunak, underscoring the transformative implications of the move.

“With the global transition to zero-emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology while creating as many as 4,000 jobs, and thousands more in the supply chain."

The colossal Somerset plant, touted as the company's flagship electric car battery factory, will be Tata’s first outside India. Furthermore, plans are afoot to supply other car manufacturers as well, with production set to kick-off in 2026.

Tata Group has been in talks for months to secure state aid for the project, and it is understood that the government has provided subsidies worth hundreds of millions of pounds. It is believed that the subsidies will manifest in the form of direct grants for factory construction, infrastructure investments, training and research funding, as well as discounts on the cost of energy.

The establishment of the gigafactory is of particular strategic significance for the UK, given that batteries typically account for more than half the value of an electric vehicle. A reliable battery supply is therefore crucial for the future of the UK car industry, especially in the wake of the government’s decision to ban the sale of new petrol and diesel cars from 2030.

Jonathan Reynolds, Labour’s Shadow Business Secretary, warmly welcomed Tata's investment. He highlighted that the initiative not only "shows the strength of the UK automotive industry," but also opens the door for further investments in the country's battery sector. However, he cautioned that the government needed to rectify its "cack-handed approach to industry and our economy" to ensure the continued growth of the sector.

However, concerns over the magnitude of subsidies provided have been raised, with the parliament's cross-party Business and Trade Committee poised to conduct an inquiry into the matter. Chairman Darren Jones stated the decision was "very welcome" but added that they would need to reflect on the subsidy package required to make this happen and its scalability for future battery manufacturing sites across the UK.

As the UK car industry finds its feet in a post-fossil fuel era, the Somerset gigafactory marks a significant stride in the journey towards electric vehicles. This large-scale investment is not only a win for Britain but also a major statement of confidence in the UK’s role in the electric vehicle revolution.