Gigafactory boost for Jaguar Land Rover

As we went to press the future of JLR as a relatively small player in the global rush to the EV had been given a boost with the news that parent Tata is to create a so-called gigafactory to manufacture batteries here in the UK. An investment of over £40bn is claimed by Tata Sons, with the target for the completed facility an annual capacity of 40GW.

Interestingly given the controversy surrounding EV battery manufacturing, Tata’s own press release claims that the cells produced by the factory will be sustainable, with the factory using 100% clean power and the manufacturing process including battery recycling to achieve a circular economy system.

The business plan calls for a rapid ramp-up of production, with the first deliveries beginning in 2026. By 2030 it’s reckoned that the UK facility will provide 50% of JLR’s battery requirement – a reflection of the fact that the UK still lags behind the rest of Europe in terms of battery production capacity.

“Tata group’s decision to build their new gigafactory here in the UK – their first outside of India – is a huge vote of confidence in Britain,” said Prime Minister Rishi Sunak. “This will be one of the largest ever investments in the UK automotive sector.” Both Sunak and Energy Minister Grant Shapps declined to put an exact value on the value of the government subsidies required to compete with a Spanish proposal to host the gigafactory, but claimed that it would remain less than £1bn.

The plant itself will be located at the Gravity business park near Bridgwater in Somerset and it’s reckoned that over 4000 jobs will be created by the venture. Tata subsidiary JLR is to be an ‘anchor’ customer for the facility which will also supply its products to the wider automotive market and that can only be positive news for the Jaguar brand as having what is effectively an in-house battery supplier makes its transition to EV products look far more viable.