Tata, the owner of Jaguar Land Rover, has confirmed that it intends to build its premier electric vehicle Gigafactory 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. Although Tata stated that it will invest £4 billion in the location, it is believed that the government is also giving subsidies totalling hundreds of millions of pounds. The facility is referred to as the UK automotive industry’s most significant investment since Nissan moved to Britain in the 1980s. One of the biggest gigafactories in Europe will be built close to Bridgwater, and it will initially produce batteries for Jaguar Land Rover cars under the 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.
The government stated on Wednesday that Tata had been granted a “large” incentive to locate the plant in the UK. Tata has been in negotiations for months to get state funding for the project. The subsidies will probably take the shape of monetary awards, energy cost breaks, and assistance for research and training. Prime Minister Rishi Sunak, meanwhile, told the BBC that Tata’s choice was influenced by a number of additional reasons. The decision, according to Sarah Olney, a member of the Liberal Democrat’s Treasury Committee, comes after years of the south west being ignored by government investment. The investment, according to the Society of Motor Manufacturers and Traders, came at a crucial time for the UK. According to SMMT Chief Executive Mike Hawes, battery production in the UK is crucial if we are to firmly establish vehicle production in the UK for the long term given the speed with which the global industry is switching to electrification.
A dependable supply of batteries is anticipated to be essential for the future of the UK automobile industry as they normally make up a significant amount of the cost of an electric vehicle.
However, the government has come under fire for lacking a distinct industrial policy and falling short of the US and EU in luring capital to low-carbon industries like battery production. The US and Europe have specific proactive strategies for jobs and investment and according to Unite union general secretary Sharon Graham. We can’t keep falling behind. She suggested that the government make use of the chance to lay out a comprehensive, long-term industrial plan and mandate that the new factory be built with steel produced in the UK.
There is only one battery plant operating in the UK, next to Nissan’s factory in Sunderland, and another barely in the planning stages in Northumberland. Britishvolt, a second potential battery producer in the north-east of England, filed for bankruptcy earlier this year. The EU, in contrast, has 35 plants that are either open, being built, or planned.
Tata has large steel operations in the UK, including the Port Talbot factory in South Wales, in addition to owning Jaguar Land Rover. The government is also anticipated to contribute about £300 million to subsidise, improve, and decarbonise those facilities.
The Business and Trade Committee of Parliament is conducting an investigation of the UK’s manufacturing industry for electric vehicle batteries. Tata’s choice to locate the new facility in the UK was hailed as “very welcome” by the company’s chairman, Darren Jones, but he questioned the size of the subsidies offered and said that we’ll want to consider whether this strategy is scalable to meet the requirement for additional battery manufacturing facilities for other car companies around the UK, as well as the incentive package that was necessary to achieve this choice.
The FairCharge organisation, which speaks for other businesses involved in the electric vehicle industry, reiterated these worries. Quentin Willson, the creator of FairCharge, claimed there was concern within the sector that Tata’s investment may monopolise all available government funding.
I sincerely hope that other businesses in the supply chains for EVs, essential minerals, batteries and charging won’t be overlooked, he said.
The UK needs a strategic industrial strategy, according to Andy Palmer, a former executive at Nissan and Aston Martin who is currently employed by EV charging company Pod Point. He added that one gigafactory does not equate success; rather, it represents a piece of the puzzle.
