Tata Motors set to build battery factory in UK

Wednesday 19th July 2023 06:58 EDT

Tata Motors' plans to construct a flagship battery factory in the UK to supply Jaguar Land Rover's electric vehicles, according to people briefed on the Indian group’s plans. According to multiple sources, Tata, the owner of JLR, has selected a site in Somerset in south-west England for the factory over a rival location in Spain. Tata could announce its choice this week, possibly as early as Wednesday.

UK Prime Minister Rishi Sunak held secret one-to-one talks in May with Natarajan Chandrasekaran, chair of parent company Tata Sons, in an attempt to kick-start Britain’s efforts to join the global race for electric car production.

Tata has requested the UK government for £500 million in aid, including road upgrades, a one-time grant from the government's $1 billion automotive transformation fund, and subsidies for the Somerset factory's high energy demand.

One industry insider said the company was poised to make the announcement. “It’s definitely by the end of the week - the government wants this out before parliament rises,” they added. Securing the proposed JLR factory at Bridgwater in Somerset is seen as a must-win by the government as it seeks to support the UK car industry, which has struggled with the shift to electric vehicle production.

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