UK set to win battle for electric Jaguar Land Rover battery plant
Written by James Woolcock and Elaine Milligan
The UK is preparing to secure a commitment from the Tata Group to build a battery plant to supply a new range of electric Jaguar and Land Rover models.
Tata has chosen a site in Somerset, western England, which is owned by the Salamanca Group, an investment and advisory firm with roots in real estate, people familiar with the plans said. The people, who declined to be named discussing the non-public information, said the Indian parent company of British Brands will make its decision as soon as this week.
Tata previously considered building its battery site in Spain, but the decision in favor of the UK will help secure the future of JLR’s plants in its traditional home market. The cell factory will eventually have a capacity of 40 gigawatt-hours, enough to power nearly half a million cars annually depending on the size of the batteries.
The decision marks a significant win for the government and the auto industry, which has struggled to compete with incentives for green technology in the United States and the European Union. The company at the center of a proposed battery factory in the North East of England, Britishvolt Ltd., entered the business. , in management earlier this year.
It would also be an important political victory for Prime Minister Rishi Sunak. European car manufacturers have sounded the alarm about upcoming tariffs on electric cars shipped between the UK and the EU, warning that assembling cars in Britain could become prohibitively expensive after Brexit rules kick in. Attempts by UK officials to persuade Brussels to push back the deadline. It hasn’t progressed yet, which could threaten Britain’s car industry.
Meanwhile, Sunak’s Conservative Party risks losing three key parliamentary seats in a three-way by-election on Thursday. One of those two, Somerton and Frome, is only a 30-minute drive from where the JLR battery factory is built.
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Tata’s battery cell company, Agratas, which is building two plants – one in India and one in Europe – earlier this month announced job openings for battery plant jobs in the UK.
A spokesperson for the Ministry of Business and Trade said they do not comment on negotiations with private companies. A Salamanca spokesman declined to comment. A Tata Group spokesman declined to comment.