Tata to build £4 bn electric car battery factory in UK

Joy Onuorah
Joy Onuorah
Tata to build £4 bn electric car battery factory in UK

India’s Tata Group has announced plans to construct an electric vehicle battery plant in Britain.

With an investment of GBP 4 billion, the new factory will play a vital role in securing the long-term future of the automotive sector by enabling domestic battery production.

British Prime Minister Rishi Sunak hailed Tata’s multi-billion-pound investment as a testament to the strength of the country’s car manufacturing industry and its skilled workforce.

The government stated that the plant would generate up to 4,000 jobs, with additional opportunities expected to arise in the supply chain.

The planned location for the new plant is Somerset, southwest England, and its output will cater to Jaguar Land Rover’s future battery-electric models, including the iconic Range Rover, Defender, Discovery, and Jaguar brands.

Production is scheduled to commence in 2026, ensuring a steady supply of batteries for the automotive giant’s electric vehicles.

The establishment of this battery factory is critical for automakers, as it enables them to have batteries manufactured in close proximity to their car production facilities.

The plant’s initial capacity of 40 gigawatt-hours will significantly contribute to meeting nearly half of Britain’s battery production requirements by 2030.

Tata Sons Chairman N Chandrasekaran emphasised the group’s commitment to the UK through this strategic investment, while industry experts praised the move as a much-needed boost for the UK’s automotive sector.

To remain competitive, government subsidies have been advocated to support the growth of the battery industry in the UK and attract significant projects.

With global competition intensifying, securing domestic battery production will not only strengthen the UK’s position but also facilitate compliance with post-Brexit trade rules, which mandate higher local sourcing of electric vehicle components to avoid tariffs on UK-EU trade from 2024.

This transformative investment aligns with the UK’s net-zero goals, including the ban on the sale of new petrol and diesel cars in 2030.

Tata’s visionary initiative signifies a remarkable step forward in the country’s transition to a greener and more sustainable automotive future.

The positive news led to an almost 2 percent surge in Tata Motors’ shares, demonstrating the market’s enthusiasm for this groundbreaking development.

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