Rishi Sunak hails Tata Group’s £4 billion gigafactory investment plan

UK Prime Minister Rishi Sunak has hailed Tata Group's multi-billion-pound gigafactory investment for electric vehicle battery plant.

"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,” British PM Sunak said.

Tata Group, the owner of Jaguar Land Rover (JLR), has announced plans to invest over £4 billion in building a new gigafactory for electric vehicle (EV) batteries in the UK. The British government has welcomed the investment, hailing it as a significant moment for the country's automotive industry and a testament to the strength of its car manufacturing sector.

The gigafactory, set to be one of the largest in Europe, will initially produce 40GWh of batteries, with production scheduled to begin in 2026. JLR will be the primary customer of the facility, ensuring a local supply of batteries for their electric vehicles. The factory's construction is expected to create up to 4,000 highly skilled jobs, along with numerous additional employment opportunities in the battery materials and raw minerals supply chain.

Location of gigafactory

The location of the gigafactory is likely to be in Somerset, in southwest England. The investment is seen as a major boost to the UK's EV industry and its long-term battery manufacturing capacity. It is estimated that the factory will fulfill almost half of the country's battery production needs projected by 2030, as indicated by the Faraday Institution.

The UK government has expressed its commitment to supporting the automotive sector's transition to electric mobility. Specific details about the incentives and support provided to Tata Group as part of the agreement will be disclosed in due course. Reports prior to the announcement suggested that the package could include subsidies in the form of grants, energy subsidies, and research funding.

UK's focus on EV industry

The investment has been widely regarded as a vote of confidence in the UK's EV industry, with the potential to drive economic growth and create thousands of jobs. The government's focus on the automotive industry, including initiatives like the Automotive Transformation Fund and strong support for research and development, demonstrates its commitment to making the UK an attractive destination for automotive investment.

(With PTI inputs)