Tata's Jaguar Land Rover to build flagship EV battery plant in UK

Tata Motors-owned Jaguar Land Rover (JLR) is set to announce plans to build a flagship electric car battery plant in the UK, according to UK media reports.

The BBC reported that people familiar with the matter said the new plant will be setup in Somerset, southwest England. Its sources claim that the government will be providing subsidies worth hundreds of millions of pounds for the new factory.

The Gigafactory follows talks with the government on the level of financial support the Tata Group would receive in return for the investment. It will be one of the most significant investments in UK automotive for decades.

The investment could lead to the creation of up to 9,000 jobs around Bridgwater in Somerset. However, its significance is pitched as a big boost for the UK's car manufacturing sector as it transitions from petrol and diesel to making electric vehicles.

Batteries typically account for more than half of the value of an electric vehicle, so a reliable supply is expected to be vital for the future of the UK car industry.

In April this year, JLR Chief Executive Adrian Mardell told reporters at a media event that the Tata Group is clear the new Gigafactory is going to be in Europe. Spain was believed to be the other site under consideration at the time.

"The important thing is our underpinning of [battery] supply is inhouse… we are the anchor customer and absolutely have equity in making sure that the right decisions are made. Wherever it (factory) goes will be an optimised proposal for us," he said.

Somerset being chosen as the site for the factory will be seen as a major achievement by the British government. The subsidies it offers Tata Motors are expected to be in the form of cash grants, energy subsidies and other training and research funding.