Tata picks Britain for new EV battery plant in major boost for car industry

The company and the government said on Wednesday that Jaguar Land Rover’s owner Tata Group will build a factory for electric car batteries in Britain, in a major boost for the car industry that needs local battery production to help secure its future.

The company said the mega plant – Tata’s first outside India – includes an investment of 4 billion pounds ($5.2 billion). The British government refused to immediately release details of the support it provided as part of the deal.

The choice of Tata for Britain is a victory for Prime Minister Rishi Sunak’s government, which has pledged to grow the economy and set net-zero targets including banning the sale of new petrol and diesel cars from 2030.

“The multi-billion pound investment by the Tata Group in a new battery plant in the UK is testament to the strength of our automotive industry and its skilled workers,” Sunak said in the statement.

The government said the factory would create up to 4,000 jobs, with other roles expected to be created in the supply chain.

Tata was considering Britain or Spain to build its new plant.

“With this strategic investment, the Tata Group reinforces its commitment to the UK,” said A.N. Chandrasekaran, Chairman of Tata Sons, in the statement.

Britain is trying to catch up with the global race to build battery capacity for electric cars locally – vital for carmakers that rely on heavy batteries being built close to their car plants.

Domestic battery production will also help carmakers comply with post-Brexit trade rules that require them to source more electric vehicle components locally to avoid tariffs on UK-EU trade from 2024.

($1 = 0.7716 pounds)

(Covering: Alistair Smoot and Moviga M; Editing by Paul Sandell)