Tata Group to Invest Over $5.2 Billion in UK Gigafactory for EV Batteries, Creating Thousands of Jobs

• ByStartupStory     |    July 19, 2023

The Tata Group, a major conglomerate, is set to make a groundbreaking investment of more than $5.2 billion in the United Kingdom by establishing an electric vehicle (EV) battery plant, also known as a gigafactory. The move is expected to generate thousands of jobs throughout the supply chain, marking a significant milestone for the UK’s automotive industry.

British Prime Minister Rishi Sunak hailed the investment as a testament to the strength of the country’s car manufacturing industry and the expertise of its skilled workers. The new gigafactory will be anchored by Tata Motors-owned luxury carmaker Jaguar Land Rover (JLR), which plans to be the initial customer. With an estimated output of 40GWh, the gigafactory will rank among Europe’s largest.

According to Sunak, this venture will enhance the UK’s economy by driving its lead in battery technology and creating approximately 4,000 jobs, along with many more in the battery materials and critical raw minerals supply chain.

N Chandrasekaran, Chairman of Tata Sons, expressed the company’s commitment to the UK and the automotive sector. He emphasized that the investment will usher in state-of-the-art technology to power the transition to electric mobility.

The gigafactory’s location is expected to be in Somerset, southwest England, and it will not only secure UK-produced batteries for JLR but also for other manufacturers in the UK and Europe.

“This is a huge vote of confidence in the UK and one that will drive growth in our economy, creating thousands of jobs and powering our transition to electric cars,” said UK Chancellor Jeremy Hunt, underscoring the significance of the investment.

The government has backed the UK’s automotive industry through incentives and support, positioning the country as one of the best places for automotive investment. The Tata Group’s gigafactory aligns with the UK’s ambitious plans to be a leading player in Europe’s electric vehicle market.

The investment marks a historic moment for the UK’s growing EV industry and will significantly contribute to the country’s battery manufacturing capacity, meeting the demand projected by the Faraday Institution.

The gigafactory is set to revolutionize the electric vehicle sector in the UK, creating a ripple effect on the economy and accelerating the transition to sustainable mobility.

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