Tata Motors' Jaguar Land Rover to Build Flagship Electric Car Battery Plant in the UK

19 Jul 2023 , 02:04 PM

Jaguar Land Rover (JLR), a subsidiary of Tata Motors, is gearing up to unveil plans for a flagship electric car battery plant in the UK, as per UK media reports on Tuesday.

The source, BBC reported that sources familiar with the matter indicated that the new plant, located in Somerset, south-west England, will be officially announced on Wednesday. The government is reportedly set to provide subsidies amounting to hundreds of millions of pounds to support the establishment of the factory.

The development of the Gigafactory follows discussions with the government regarding the level of financial support Tata Group would receive in exchange for the investment. If realized, this project would represent one of the most significant investments in the UK automotive sector in decades.

The proposed investment could lead to the creation of up to 9,000 jobs in the Bridgwater area of Somerset. Moreover, it is deemed a major boost for the UK’s car manufacturing industry, facilitating its transition from traditional internal combustion engines to electric vehicles.

Batteries are a crucial component of electric vehicles, accounting for more than half of their value. Therefore, establishing a reliable supply of batteries is considered vital for the future of the UK’s automotive sector as it shifts towards electrification.

JLR Chief Executive Adrian Mardell previously stated that the Tata Group is committed to locating the new Gigafactory in Europe. Spain was rumored to be another potential site under consideration during the planning stages.

The decision to choose Somerset as the factory site is expected to be regarded as a significant achievement by the British government. The subsidies offered to Tata Motors may take various forms, such as cash grants, energy subsidies, and funding for training and research initiatives.

The announcement of Jaguar Land Rover’s plans to establish a flagship electric car battery plant marks a crucial milestone for the UK’s automotive sector, positioning the country as a competitive player in the rapidly evolving electric vehicle market.

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