Jaguar Land Rover’s owner plans to invest £4 billion in a battery manufacturing in the United Kingdom.

The new Somerset facility is expected to produce 4,000 employment in the UK and thousands more in the wider supply chain.

Tata has stated that it will invest £4 billion in the site, but it is believed that the government will provide subsidies worth hundreds of millions of pounds.

The facility is billed as the largest investment in UK automotive since Nissan’s arrival in the 1980s.

The planned gigafactory will be one of Europe’s largest, producing batteries for Jaguar Land Rover vehicles such as the Range Rover, Defender, and Jaguar brands.

The intention is to supply other automakers as well, with manufacturing at the new factory set to begin in 2026.

Tata has been negotiating governmental help for the project for months. The corporation considered a competitor site in Spain for the battery factory.

According to sources, a large level of subsidy has been offered, which is likely to take the shape of cash grants, energy cost concessions, and training and research money. The incentive package’s size has not been announced.

“With the global transition to zero emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology while creating up to 4,000 jobs, and thousands more in the supply chain,” Prime Minister Rishi Sunak stated.

“This is a welcome move by Jaguar Land Rover after years of the south west being neglected by Government investment,” said Liberal Democrat Treasury spokesman Sarah Olney MP.

The plant is Tata’s first outside of India, and it is believed that it would aid the automotive industry’s transition from gasoline and diesel to electric vehicles.

According to the Society of Motor Manufacturers and Traders, the investment comes at a vital time for the UK.

“With the global industry rapidly transitioning to electrification, producing batteries in the UK is critical if we are to anchor wider vehicle production here for the long term,” said SMMT CEO Mike Hawes.

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