Tata Group picks Britain for new EV battery plant, to invest $5.2 bn

Jaguar Land Rover-owner Tata Group will build an electric vehicle battery plant in Britain, the company and the government said on Wednesday, in a major boost for a car industry in need of domestic battery production to help secure its future.

 

The gigafactory – Tata’s first outside of India – includes an investment of 4 billion pounds ($5.2 billion), the company said. Britain’s government declined to immediately detail what support it had provided as part of the deal.

 

Tata’s choice of Britain is a win for Prime Minister Rishi Sunak’s government, which had pledged to grow the economy and had set net zero goals including a ban on the sale of new petrol and diesel cars from 2030.

 

“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,” Sunak said in the statement.

 

The government said the factory would create up to 4,000 jobs, with further roles expected to be created in the supply chain.

Tata had been considering Britain or Spain for its new factory.

 

“With this strategic investment, the Tata Group further strengthens its commitment to the UK,” Tata Sons Chairman N Chandrasekaran said in the statement.

 

Britain is trying to catch up in the global race to build electric vehicle (EV) battery capacity locally – vital for automakers which rely on heavy batteries being built near their car factories.

 

Homegrown battery production will also help automakers comply with post-Brexit trade rules that will require them to source more electric vehicle components locally in order to avoid tariffs on UK-EU trade from 2024.

 

($1 = 0.7716 pounds)

(Reporting by Alistair Smout and Muvija M, Editing by Paul Sandle)