Jaguar Land Rover owners Tata Group have announced new plans to build a £4bn EV battery gigafactory in the UK.
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Hailed as a “shot in the arm” for the fledgling UK EV market by the government, the factory will provide thousands of jobs at the Bridgwater, Somerset site and in the wider supply chain. Production is expected to begin in 2026.
The New Plant
Tata’s plans are supported by UK government subsidies thought to be in the area of £800 million. Initially, batteries will be produced for Land Rover and Jaguar EV models, with the plant expected to produce batteries for other automobile manufacturers eventually.
The capacity of the plant is predicted to be around 40GWh. To put this into perspective, this level of production will be enough to keep the wheels turning for hundreds of thousands of electric vehicles.
The announcement of the gigafactory comes as the UK government is criticized for a lack of a coherent industrial net zero strategy. The government have managed to stave off rival bids for Tata’s investment. Previously, the company had plans to build the factory in Spain.
Tata’s announcement represents the most significant investment in the UK’s automobile industry since the arrival of Nissan in the late 1980s. Vehicle manufacture in the nation has declined steadily over the past few decades, with much of the production moved overseas.
Improving the UK's Industrial Strategy
The news of Tata Motor's investment will no doubt come as a relief for the UK government after battery manufacturer Britishvolt entered administration earlier in 2023. Currently, the UK has a lack of EV battery factories, with only one plant in Sunderland operated by Nissan.
In contrast, the EU has 35 plants either already in operation, under construction, or planned. The UK’s clear disadvantage in the EV market, compared to other major world economies such as the US and China, has been noted by many industry observers over the past years.
In order to regain a competitive edge as an industrial powerhouse, the UK will need to invest heavily in new technologies over the next decade or so. Green technologies, being a hot-button industrial topic currently, will make up the bulk of the UK’s emerging industrial strategy.
Government and opposition sources have welcomed the new plant, with Prime Minister Rishi Sunak stating that this investment will secure the UK's status as an attractive place for electric vehicle battery production. Opposition figures have also stated their pledge to carry on investment if they win power in the general election.
The Road to Net Zero
The need to curb greenhouse gases has become apparent over the past few years, with many nations now experiencing increasing instances of extreme weather events and rising temperatures. The UK government has stated its goals to deliver on net zero promises, with the sale of all new ICE vehicles to be banned by 2030.
As well as plans for the Bridgwater factory, Tata Group has also invested heavily in the UK market, with plans to manufacture new EVs in the UK and provide new training for thousands of staff, ensuring the future of the company’s net zero goals. The company expects to invest around £15 billion over the next five years.
Coming amidst the news that the UK government may be falling behind in its pledges to sharply reduce carbon emissions and limit the effects of global warming, Tata’s plans may be the impetus required to fuel the emerging EV sector in the UK.
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References and Further Reading
Jack, S & Hooker, J (2023) Jaguar Land Rover-owner to spend £4bn on UK battery factory [online] bbc.co.uk. Available at:
https://www.bbc.co.uk/news/business-66237935
Tata Group (2023) Tata Group to Set Up a Battery Gigafactory in the UK [online] tata.com. Available at:
https://www.tata.com/newsroom/business/battery-gigafactory-uk
Stone, S (2023) 'A shot in the arm': Jaguar Land Rover-owner confirms plans for £4bn electric car battery gigafactory [online] businessgreen.com. Available at:
https://www.businessgreen.com/news/4120434/shot-arm-jaguar-land-rover-owner-confirms-plans-gbp4bn-electric-car-battery-gigafactor
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