Join our community of smart investors

Tata’s £4bn gigafactory a ‘shot in the arm’ for UK’s car industry

The site, near the M5 in Somerset, will employ around 4,000 people and supply Jaguar and Land Rover models
July 19, 2023

A new Jaguar Land Rover £4bn gigafactory will have the capacity to produce up to half of the batteries the UK will need for electric vehicles by 2030, the government has said.

India's Tata Group, which owns Jaguar Land Rover, announced the details of the Somerset plant on Tuesday, after a competition between the UK and Spain to host the factory. Once built, it will produce up to 40 gigawatt hours (GWh) of battery capacity and will be one of the biggest operations of its kind in Europe. Tata said it would create up to 4,000 jobs directly, plus thousands more in the supply chain.

Tata’s decision to build the plant in the UK was described by prime minister Rishi Sunak as “testament to the strength of our car manufacturing industry and its skilled workers”. The government is understood to be providing hundreds of millions of pounds in incentives to facilitate its construction. Tata has asked for around £500mn in assistance, according to the Financial Times.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in