Tata, the owner of Jaguar Land Rover, has confirmed plans to erect its premier electric vehicle battery manufacturing in the UK.
4,000 new jobs in the UK and thousands more throughout the supply chain are anticipated to be created by the new Somerset factory.
Tata stated that it will invest £4 billion in the location, although it is believed that the government is also making substantial financial contributions.
The facility is referred to as the UK automotive industry’s most significant investment since Nissan moved there in the 1980s.
One of the biggest in Europe will be the new gigafactory in the area of Bridgwater. It will produce batteries for vehicles under the Jaguar Land Rover, Range Rover, Defender, and Jaguar brands.
With production set to begin at the new factory in 2026, it is intended to also supply other automakers.
Tata has been in talks for months to get the project public funding. It has given the battery plant’s competing location in Spain some thought.
According to sources, there has been a large amount of subsidy given, which is probably in the form of cash grants, energy cost breaks, and assistance for training and research.
Energy Secretary Grant Shapps told the BBC’s Today programme, that the incentive offered to Tata “is large”.
“I make no bones about that,” he said. “When I was first involved nine months ago, it was a call from Tata to tell me that the factory was going elsewhere. We have fought very hard for it.”He added: “It wasn’t just about money, it was also the UK’s lead in things like battery research.”
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.”
Liberal Democrat Treasury spokesperson Sarah Olney MP said: “This is a welcome move by Jaguar Land Rover after years of the south west being neglected by Government investment.”
The facility, which is Tata’s first outside of India, is expected to aid in the industry’s shift from producing gasoline and diesel-powered cars to electric ones.
The investment, according to the Society of Motor Manufacturers and Traders, comes at a crucial time for the UK.