Chairman N Chandrasekaran with UK Prime Minister Rishi Sunak. Photo: Tata SonThe UK has been chosen as the home of Tata Son’s first gigafactory outside India, in a move that will create 1,000s of jobs and bring a huge boost to the UK’s automotive sector. Tata Group confirmed yesterday that the UK had secured one of the largest ever investments in the UK automotive industry. The gigafactory will secure UK-produced batteries for another Tata Sons investment, Jaguar Land Rover (JLR), as well as other manufacturers in the UK and Europe.
The new gigafactory, at 40GWh, will be one of the largest in Europe. It will create up to 4,000 highly skilled jobs, as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals, helping grow the economy and take forward the UK’s commitment to ‘net zero’.
Prime Minister Rishi Sunak said: “Tata Group’s multi-billion-pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and its skilled workers. With the global transition to zero-emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology whilst creating as many as 4,000 jobs, and 1,000s more in the supply chain.
“We can be incredibly proud that Britain has been chosen as home to Tata Group’s first gigafactory outside India, securing our place as one of the most attractive places to build electric vehicles (EVs).”
Mr N Chandrasekaran, Tata Sons chairman, said: “The Tata Group is deeply committed to a sustainable future across our business. I am delighted to announce the Tata Group will be setting up one of Europe’s largest battery cell manufacturing facilities in the UK. Our multi-billion-pound investment will bring ‘state of the art’ technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, JLR.
“With this strategic investment, the Tata Group further strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive. I also want to thank His Majesty’s Government, which has worked so closely with us to enable this investment.”
The investment of over £4 billion represents a historic moment for the UK’s growing electric vehicles industry. The new gigafactory will supply JLR’s future battery electric models including the Range Rover, Defender, Discovery and Jaguar brands, with the potential to also supply other car manufacturers. Production at the new gigafactory is due to start in 2026.
This investment is seen as crucial to boosting the UK’s battery manufacturing capacity needed to support the EV industry in the long term. With an initial output of 40GWh it will also provide almost half of the battery production that the Faraday Institution estimates the UK will need by 2030.
Tata’s decision is a major vote of confidence in UK automotive. The Government is committed to making the UK one of the best places in the world for automotive investment, as evidenced by the Automotive Transformation Fund, the British Industry Supercharger, and the strong programme of support for research and development.
Chancellor of the Exchequer Jeremy Hunt said: “This is a huge vote of confidence in the UK and one that will drive growth in our economy, creating thousands of jobs and powering our transition to EVs. Tata Group’s gigafactory builds on the strength of our manufacturing industry and shows we are on the right track, backing the sectors that will underpin our future prosperity for decades to come.”
Industry reactionMike Hawes, SMMT chief executive, said: “This is a shot in the arm for the UK automotive industry, our economy and British manufacturing jobs, demonstrating the country is open for business and electric vehicle (EV) production. It comes at a critical moment, with the global industry transitioning at pace to electrification, producing batteries in the UK is essential if we are to anchor wider vehicle production here for the long term. We must now build on this announcement by promoting the UK’s strengths overseas, ensuring we stay competitive amid fierce global pressures and do more to scale up our EV supply chain.”
Tony Hague, CEO of PP Control & Automation, one of the UK’s leading providers of control and automation, contract manufacturing and strategic manufacturing outsourcing, said: “Tata’s announcement today is such a strategically important investment for the UK, not only for the direct jobs it will create, but, importantly, in the impact it will have on the downward supply chain required to support it.
“This is where I believe we are still at a crossroads. It is superb news that we have this huge battery plant coming, that is the first thing. However, we will be missing a massive ‘GDP’ opportunity if we don’t put plans in place to ensure that it is UK companies who supply the content and technical knowledge required to make the batteries here.
“We can’t afford to have this ‘state of the art’ plant and then ‘farm out’ large parts of the component and sub-contract value to overseas suppliers. If we can get this right, then the actual positive impact will be way more than the £4 billion going into Somerset. The good news is that we already have massive strengths in this area, and we have the early signs of a very good supply chain that is leading the world in producing components that go into these batteries.
“Let us use this opportunity to really invest and upskill in the wider engineering sectors, so we have a fit for purpose and competitive UK-centric supply chain that cannot only support this exciting new investment, but equally take advantage of further opportunities that will certainly present themselves within the electrification sector.”
He added: “When it comes to Government incentives to attract this investment decision, I unapologetically congratulate Rishi Sunak and co for what they have done. Attracting these global companies means doing battle with many locations all over the world and, indeed, Governments who are only too willing to sweeten the deal – it is about time we switched on to how the rest of the world operates.
“In property, you tend to need an anchor tenant and then the rest of the retailers follow…this is no different in automotive. With Tata and JLR taking the plunge, hopefully we’ll see more inward investment and maybe even other car makers placing their faith in what the UK can deliver.”
Austin Owens, co-Chair of the Manufacturing Assembly Network (MAN), a collective of seven sub-contract manufacturers and a specialist engineering design agency, said: “It is great news that the UK is going to have a battery gigafactory on a scale that shows serious investment in green transport.
“The reported 4,000 direct jobs set to be created will undoubtedly lead to many more in the supply chain and that is a welcome boost. It would also be good to think that this is part of a bigger investment story, where other similar plants contribute to a modern-day expansion of the UK automotive industry.
“However, let us not forget that batteries and EVs are part of a much bigger environmental and economic picture. Electric vehicles need a charging infrastructure based on green energy and industry needs access to cheaper green energy.
“MAN has been calling out for a coherent industrial strategy and has responded by launching our own MANifesto around international trade, people, innovation, and sustainability. This announcement today feeds directly into all four of those pillars.”
He concluded: “How wonderful would it be if this is part of a long-term view, where the UK re-establishes itself within the automotive field, but also invests in R&D conducted by well-trained young scientists and engineers working on this and the next generation of energy storage?”