Tata’s ?4bn battery gigafactory to ‘turbocharge’ EV production
Multinational conglomerate the Tata Group has announced plans to build a £4bn battery gigafactory in the UK which is set to be one of the largest in Europe, providing a welcome boost to the automotive industry.
Tata said the battery cell factory will deliver electric vehicle and renewable energy storage solutions for customers in the UK and Europe.
The factory will initially supply Jaguar Land Rover – which is owned by Tata – and Tata Motors, which will start to receive supplies from 2026, it said, and will also have the potential to supply other car manufacturers.
The plant aims to have the capacity to produce 40 gigawatts of battery capacity annually, which Tata said makes it “an integral part” of its commitment to “a competitive green tech ecosystem in the UK at scale”.
The gigafactory is set to provide almost half of the battery production needed by 2030 – “turbocharging” UK’s switch to zero emissions vehicles, the Department for Business and Trade said.
Tata Sons (Tata Group’s parent company) chairman, Natarajan Chandrasekaran, explained the factory would help establish a “sustainable future” across all of its business, and the manufacturing facility would be “one of Europe’s largest”.
“Our multi-billion pound investment will bring state-of-the-art technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, Jaguar Land Rover,” he added. “With this strategic investment, the Tata group further strengthens its commitment to the UK.”
The announcement will be welcome news to the UK automotive industry, as manufacturers previously raised concerns[1] about the country’s incoming rules of origin requirements for electric vehicles.
In May, prime minister Rishi Sunak was forced to reassure manufacturers that rules coming into force next year – which will require 45% of the value of an electric vehicle to originate in the UK or EU to qualify for free trade under the UK-EU post-Brexit trade agreement – would not disadvantage British EV makers.
The Society of Motor Manufacturers and Traders’ chief executive, Mike Hawes, said: “This is a shot in the arm for the UK automotive industry, our economy and British manufacturing jobs, demonstrating the country is open for business and electric vehicle production.
“It comes at a critical moment, with the global industry transitioning at pace to electrification, producing batteries in the UK is essential if we are to anchor wider vehicle production here for the long term. We must now build on this announcement by promoting the UK’s strengths overseas, ensuring we stay competitive amid fierce global pressures and do more to scale up our EV supply chain.”
UK prime minister, Rishi Sunak, said: “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. This will be one of the largest ever investments in the UK automotive sector. It will not only create thousands of skilled jobs for Britons around the country, but it will also strengthen our lead in the global transition to electric vehicles, helping to grow our economy in clean industries of the future.”
The company’s plans for its manufacturing capacity to begin with a “rapid ramp-up phase” which will see production start in 2026. Tata explained the gigafactory intends to “maximise” its renewable energy mix, with an ambition for 100% clean power.
It added: “The plant will employ innovative technologies and resource efficient processes like battery recycling to recover and reuse all the original raw materials to deliver a truly circular economy ecosystem.”
On Monday (July 17), a report suggested[2] EV batteries could be recycled for reuse in electric grids in order to improve long term energy security and reduce lifecycle emissions.
☛ Want to stay up to date with the news? Sign up to our daily bulletin.[3]
References
- ^ previously raised concerns (www.cips.org)
- ^ report suggested (www.cips.org)
- ^ Sign up to our daily bulletin. (www.cips.org)