The UK government has stepped up its push to anchor the industries of the future at home, securing 4,200 jobs and unlocking more than £700 million in investment for advanced
manufacturing—led by a flagship battery gigafactory in Somerset.
During a visit to Agratas on 9 April, Business Secretary Peter Kyle confirmed a £380 million public grant to support construction of one of Europe’s largest electric vehicle battery plants. The facility, built using entirely British steel, is expected to become a cornerstone of the UK’s domestic battery supply chain.
The project is not just about scale—it is about long-term economic resilience. Once fully operational, the Somerset gigafactory is projected to generate around £43 billion in economic value over 25 years while reducing reliance on imported batteries.
Jobs, skills and supply chains
Beyond the 4,200 direct roles, the factory is expected to create thousands more across the supply chain and deliver 300 apprenticeships. A dedicated training centre will help equip workers with the specialised skills needed for battery manufacturing—an area seen as critical to the UK’s transition to electric vehicles.
Agratas, which will supply battery cells to Jaguar Land Rover, says the site will employ more than 2,200 people during its construction phase alone, with further expansion planned in the coming years.
A wider industrial strategy at work
The investment forms part of the government’s broader 'Modern Industrial Strategy', a long-term plan designed to stabilise the UK’s business environment and attract private capital into key growth sectors such as advanced manufacturing, clean energy and automotive innovation.
Since its launch, the strategy has already drawn in more than £360 billion of private investment and supported up to 120,000 jobs. Its approach combines targeted public funding with structural reforms—cutting electricity costs for heavy industry, streamlining planning processes and easing regulatory barriers.
Recent measures underline the scale of ambition:
- £47 million for battery research and development through the Battery Innovation Programme
- £190 million to strengthen the automotive sector, including funding for EV innovation
- £100 million to help regional suppliers transition to electric vehicle production
- Nearly £200 million in engineering and skills funding to build a future-ready workforce
Additional support is also being channelled into digital manufacturing technologies such as AI and robotics, as well as emerging fields like autonomous transport.
Competing in a volatile global market
For ministers, the strategy is as much about economic security as it is about growth. In a world of disrupted supply chains and intensifying global competition, the UK is aiming to position itself as a reliable, innovation-driven hub for advanced manufacturing.
Kyle framed the approach as a long-term partnership with industry, arguing that policy stability is key to attracting investors willing to commit for decades rather than years.
Industry leaders have broadly welcomed the move. Automotive and manufacturing groups say the combination of public funding and clearer long-term direction strengthens the UK’s competitiveness—particularly in the race to dominate electric vehicle production.
A signal of intent
The Agratas gigafactory is more than a single investment—it is a signal of how the UK intends to compete globally: by backing strategic industries, building domestic capability and aligning skills, innovation and infrastructure around future technologies.
With billions already committed and more expected to follow, the Modern Industrial Strategy is shaping up to be a defining pillar of Britain’s economic policy in the years ahead.
