The owner of Jaguar and Land Rover has chosen Somerset in the UK as the site of a massive new battery plant – called a gigafactory – to supply its British and European plants as they move towards electrification. The move is set to create thousands of jobs and bring a huge boost to the UK’s automotive sector.

The new gigafactory, at 40GWh, will be one of the largest in Europe. It will create up to 4,000 highly skilled jobs, as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals.

Tata’s investment is thought to be around £4bn, with the government providing hundreds of millions in subsidies to ensure the plant wasn’t built elsewhere in Europe.

The new gigafactory will supply JLR’s future battery electric models including the Range Rover, Defender, Discovery and Jaguar brands, with the potential to also supply other car manufacturers. Production at the new gigafactory is due to start in 2026, and will provide almost half of the battery production that the Faraday Institution estimates the UK will need by 2030.

Industry experts have welcomed the news but also urged caution. Ginny Buckley, founder and CEO of Electrifying.com said: “This news is a much-needed boost for our car industry, which creates £14 billion of added value for the UK economy. However, while celebrating the prospect of a new battery factory in the South West we also need to put it in context alongside the US Inflation Reduction Act, which will offer billions in subsidies to car makers who create electric vehicle supply chains there, along with current plans to build around 50 gigafactories in Europe.

“The Government needs to understand that we’re in a global race to net zero and car makers will ultimately go where the batteries are being built. This announcement is a great start, but if the UK car industry is to stay competitive on the global stage as it electrifies, investment into our supply chain - and gigafactories in particular - is crucial.”

Dr Andy Palmer, founder and CEO, Palmer Automotive added: “As a long-time advocate for government support of the nascent UK battery industry, I, like any sensible onlooker, welcome the news. However, I also air caution and so should the industry.

“If UK dishes out the bulk of its battery-related support to one brand, then we still face likely car industry Armageddon. Support must come in all shapes and sizes for businesses of all shapes and sizes. One gigafactory doesn’t equal success, it equals part of the puzzle.

“We need a harmonious, collaborative, strategic industrial strategy that lifts all boats. Or the tide will sweep the UK automotive sector into the deep abyss.”

Quentin Willson, founder of FairCharge said: “While this is a very significant development for UK battery manufacturing, I truly hope that other companies in the battery, critical minerals, charging and EV supply chains won’t be neglected. The Government should see this subsidy as the beginning of building a battery ecosystem in this country. There is a genuine fear in the industry that it could sweep up all available government support, which would be hugely detrimental to the future health of UK PLC in the race to zero. We have some world class battery and EV talent and we must support them as much as we can to prevent this valuable resource of innovators moving to other more receptive markets.”

Jaguar's future electric coupe will be supplied by the new plant