The UK government is set to provide £380 million in funding for the Somerset battery factory that will supply Jaguar Land Rover (JLR), despite facing construction delays. This facility is crucial for JLR, the largest automotive employer in the UK, as it will produce batteries for their electric Range Rover and Jaguar models. JLR is a subsidiary of the Indian multinational Tata, which is also behind the electric vehicle (EV) battery factory under its Agratas division.
During a visit to the Bridgwater construction site in Somerset, Business Secretary Peter Kyle announced the financial support. The government anticipates that the battery plant, often referred to as a gigafactory, will create around 4,200 jobs in the long term.
Tata disclosed in 2023 that the entire project could demand up to £4 billion in investment, with a portion of that being financed by the UK government, which had not been made public before. However, the development has not progressed as quickly as anticipated. Agratas initially aimed to begin production by 2026, but that timeline is now in doubt following JLR’s decision to postpone the launch of its flagship electric vehicle, the Range Rover EV.
Globally, many EV manufacturers have postponed or even canceled plans for new battery models after misjudging the speed at which consumers would transition from petrol vehicles. Recent geopolitical tensions, including Donald Trump’s actions in Iran, have led to a significant rise in petrol prices, potentially making electric vehicles more appealing and justifying the substantial investments required for the shift to electric production.
The Agratas facility will be the second high-capacity battery production site in the UK, with an expected annual output of 40 gigawatt hours, sufficient to power hundreds of thousands of vehicles. The only other gigafactory in the UK is operated by the Chinese-owned AESC in Sunderland, located in northern England.
As of now, the Somerset factory remains in the early stages of construction, primarily consisting of a steel framework, with plans to commence battery production by the end of 2027. Agratas has also reduced the size of the first building of the three planned structures, citing enhanced efficiency in the design rather than a decrease in projected output.
Initially, JLR intended to launch the electric Range Rover in 2025, but it was reported by The Guardian last year that the release had been postponed to this year. Although prototypes have been completed for several months, the urgency to expedite the vehicle’s market entry lessened after the UK government relaxed electric vehicle sales targets.
Tata has previously secured £500 million in government support aimed at upgrading its Welsh steelworks to more environmentally friendly electric arc furnaces.
During his announcement, Kyle emphasized that the Agratas investment, along with other automotive research initiatives unveiled on the same day, would “stimulate economic growth and resilience, secure jobs, and increase disposable income for individuals.”
He remarked, “In a world filled with uncertainties, our contemporary industrial strategy is granting investors the stability and confidence necessary for long-term planning, extending beyond just the next year into the next decade and beyond. This distinct approach will ensure that advanced manufacturing continues to thrive in the UK for many years to come.”
Earl Wiggins, Vice President of UK Manufacturing Operations for Agratas, expressed appreciation for the UK government’s investment, highlighting its significance in establishing a battery manufacturing facility that will contribute to achieving net-zero emissions and solidifying the UK’s position as a leader in battery production globally. He stated, “This funding will facilitate the development of our Somerset site, allowing us to manufacture battery cells for our key customer, JLR. Over the next year, we will have more than 2,200 personnel working on-site, and we expect this number to grow in the coming years.”
Until the Agratas factory is operational, JLR will continue to procure batteries from AESC, a deal confirmed last year by Société Générale, an investment bank, although references to JLR were later removed from their website following inquiries from The Guardian.
