Tata, the owner of Jaguar Land Rover, is set to announce its plans to build a flagship electric car battery factory in Somerset, UK. According to sources familiar with the matter, the official
announcement will be made on Wednesday. The UK government is said to be providing subsidies worth hundreds of millions of pounds to support the project. Industry experts have hailed the plant as a significant investment in the UK automotive sector, comparable to Nissan's arrival in the 1980s.
The construction of the battery factory has the potential to generate up to 9,000 jobs in the Bridgwater area of Somerset. Beyond job creation, the factory's significance lies in its contribution to the transition from traditional petrol and diesel vehicles to electric vehicles. As batteries account for more than half of the value of an electric vehicle, establishing a reliable supply is crucial for the future of the UK car industry.
The UK has been criticized for lagging behind the US and EU in attracting investment in low-carbon technologies and for lacking a clear industrial strategy. Industry insiders hope that Tata's battery investment will pave the way for additional battery investments in the UK. Currently, the UK has only one operational battery plant near Nissan's Sunderland factory, with another in the planning stages in Northumberland. In contrast, the EU has 35 battery plants in operation, under construction, or planned.
The UK government has set net-zero goals, including a ban on the sale of new petrol and diesel cars by 2030. However, its recent five-year program has been criticized for not providing adequate funding and legislation to achieve these targets. As the UK exports a significant number of cars, ensuring a smooth transition to electric vehicles is crucial for its overseas markets.
The new factory in Somerset will initially supply batteries for a new range of electric Jaguar and Land Rover models. Tata Group, an Indian multinational, had considered a rival site in Spain for the battery plant, making its decision to choose the UK a significant win for the British government. While the exact size of the incentive package has not been disclosed, it is believed that substantial subsidies, in the form of cash grants, energy cost discounts, and training and research funding, have been provided.
The parliamentary Business and Trade Committee is currently conducting an inquiry into the UK's electric vehicle battery manufacturing sector. The committee chairman, Darren Jones, welcomed Tata's decision but raised concerns about the scale of the subsidies provided and their potential implications for other car manufacturers in the UK. Industry representatives have also expressed the need for a comprehensive industrial strategy that supports all companies involved in the battery, critical minerals, charging, and EV supply chains. Photo by DeFacto, Wikimedia commons.