Indian giant, Tata Group, invests in the United Kingdom
The Indian conglomerate, Tata Group, has announced that it will invest over £4 billion in a gigafactory for battery cells in the United Kingdom. This marks Tata’s first such investment outside of India. The factory is expected to have a production capacity of 40 GW annually.
Tata Group’s facility, set to commence production in 2026, will become the primary battery supplier for Jaguar Land Rover’s British factories. This endeavor will create over 4,000 new jobs.
Tremendous Confidence in the UK
The Prime Minister of the United Kingdom, Rishi Sunak, described Tata Group’s decision as a massive vote of confidence in the country. It is poised to be one of the largest investments in the history of the British automotive sector. He emphasized that the factory will strengthen the UK’s position in the e-mobility transformation.
Tata Group can expect support from the British government, although Energy Minister Grant Shapps indicated that it would be substantial but not reach one billion pounds. Andy Palmer, former CEO of Aston Martin and current CEO of InoBat, told BBC Radio that government subsidies are essential to maintain the competitiveness of the United Kingdom.
Support for Future JLR Models
The new facility is planned to be located in Somerset, in the southwest of England. It will support Jaguar Land Rover’s ambitious plans to increase the production of electric vehicles under brands/models such as Range Rover, Defender, Discovery, and Jaguar.
With a production capacity of 40 GW, the factory will supply nearly half of the value that the UK needs to achieve by 2030, according to the Faraday Institution, which predicts that the UK will require over 100 GW of batteries annually by that time.
The United Kingdom is set to implement a complete ban on the sale of new gasoline-powered vehicles by 2030. The battery production facility is certainly the first step toward realizing this plan. The UK government pledged in 2019 that it would not repeat the mistakes that led to Tesla’s decision to cancel plans for a gigafactory in the UK.