The new facility, located in Somerset, is set to become one of Europe's largest battery cell manufacturing sites.
Tata Group's investment is expected to create around 4,000 jobs at the gigafactory itself, and thousands more in the broader supply chain. This much-needed boost to the domestic automotive industry comes at a critical time for the UK, as the country prepares for its ban on the sale of new petrol and diesel cars by 2030.
Prime Minister Rishi Sunak said: "With the global transition to zero-emission vehicles well 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."
While exact details of the UK Government’s financial involvement in the project remain undisclosed, it is understood that it has offered subsidies in the form of cash grants, energy cost discounts, and research funding.
The facility is expected to produce high-quality, high-performance, and sustainable battery cells and packs for various applications within the mobility and energy sectors.
The gigafactory is committed to optimising its renewable energy sources, aiming for a 100 percent clean power supply. To achieve this, the plant will leverage innovative technologies and resource-efficient practices, such as battery recycling, to recover and reuse all the original raw materials. This approach will create a truly circular economy ecosystem.
With production scheduled to commence in 2026, Tata Group aims to supply not only JLR’s battery electric models, including the Range Rover, Defender, Discovery and Jaguar brands, but also other car manufacturers.
Described by Energy Security Secretary Grant Shapps as the UK’s “largest ever investment in electric vehicle manufacturing”, the move will be crucial in enhancing the nation’s battery manufacturing capacity required to sustain the electric vehicle industry in the long term.
With an initial production capacity of 40GWh, the investment is anticipated to fulfil nearly half of the estimated battery production needed to meet the Government’s 2030 goals.
While the announcement has been met with optimism, the Government has faced criticism for its perceived lack of a clear industrial strategy, resulting in the UK falling behind the US and EU in terms of attracting investments in low-carbon technologies.
While the EU currently boasts 35 battery plants, the UK’s battery manufacturing landscape is limited, with only one operational plant near Nissan's Sunderland factory and another in the early planning stages in Northumberland. In addition, Britishvolt, a proposed battery manufacturer in the north-east of England, went into administration earlier this year, underscoring the challenges in this sector.
Sharon Graham, General Secretary at the Unite union, urged the Government to present a comprehensive, long-term industrial plan, further emphasising the need for the gigafactory to be constructed using UK steel, ensuring domestic industries benefit from the investment.
Andy Palmer, former Executive at Nissan and Aston Martin, now associated with EV charging firm Pod Point, also emphasised the importance of diverse and tailored support for businesses of all sizes. This strategic approach would help sustain growth and avoid concentrating incentives solely on a single project.
"One gigafactory alone does not guarantee success; it is just one piece of the puzzle," Palmer stated.
As Tata Group's investment marks a crucial milestone in the automotive landscape, it remains to be seen how this significant move will shape the future of electric mobility in the UK and contribute to achieving the country's net zero ambitions.