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Apr 09, 2026

UK Grants £380 million to Tata‑Backed Somerset Battery Gigafactory Supplying Jaguar Land Rover EVs

AI Summary
The British government has approved a £380 million subsidy for a Tata‑owned battery plant in Somerset, intended to supply Jaguar Land Rover’s upcoming electric models. The grant aims to accelerate construction of the gigafactory, create thousands of jobs, and bolster the UK’s EV supply chain amid rising fuel prices and delayed EV roll‑outs.

The UK government has pledged £380 million to accelerate the build‑out of a new battery factory in Somerset that will supply Jaguar Land Rover (JLR) with cells for its forthcoming electric Range Rover and Jaguar models.

The plant, operated by Tata’s battery subsidiary Agratas, was highlighted during a site visit by Business Secretary Peter Kyle, who emphasized the grant’s role in safeguarding jobs and driving economic growth.

When fully operational, the gigafactory is projected to employ 4,200 workers and deliver up to 40 GWh of battery capacity annually—enough for hundreds of thousands of electric vehicles. It will become the UK’s second high‑volume battery facility after the Chinese‑owned AESC plant in Sunderland.

Construction remains in its early stages, with only a steel frame erected so far. Although the original timetable targeted production start‑up in 2026, delays have pushed the expected commencement to the end of 2027. Agratas has reduced the footprint of the first building but claims the change reflects more efficient process design rather than a cut‑back in output.

JLR, the nation’s largest automotive employer, had planned to launch its electric Range Rover in 2025, but the debut has slipped to 2026 and the vehicle is still not on sale. The postponement follows a broader trend of EV manufacturers worldwide scaling back or postponing battery projects after over‑optimistic forecasts of rapid consumer migration from petrol.

Recent spikes in petrol prices—spurred by geopolitical tensions linked to Donald Trump’s war in Iran—could make electric cars more appealing, potentially justifying the sizeable capital commitments required for a transition to EV production.

Until the Somerset facility becomes operational, JLR will continue to source batteries from AESC. That arrangement was confirmed last year by investment bank Société Générale, though references to JLR have since been removed from public statements.

In addition to the battery grant, Tata previously secured a £500 million pledge to modernise its Welsh steelworks with electric arc furnaces, underscoring the government’s broader push for greener industrial capacity.

Peter Kyle said the investment, alongside other automotive research initiatives announced on the same day, would “boost economic growth, secure jobs and put more money in people’s pockets.” He added that the UK’s “modern industrial strategy” provides the stability needed for long‑term planning.

Earl Wiggins, Agratas’s vice‑president for UK manufacturing, welcomed the funding, noting it will enable the company to “deliver net‑zero goals and strengthen the UK’s position as a global leader in battery manufacturing.” He projected that over 2,200 staff would be on‑site within the next year, with further growth thereafter.