Tatas pick UK for £4 billion gigafactory that will supply JLR's future models

Tata Group announced it will set up a battery manufacturing plant in Britain to support the company's electric vehicles.

The investment is being made through Jaguar-Land Rover and will supply the unit's future models such as Land Rover's Range Rover, Defender and Discovery models and cars offered under the Jaguar brand.

Tatas' selection of Britain — Spain was the other nation in the running — is a big boost for the UK, which has been looking to attract battery manufacturers to set up local capacity. The plant is likely to be located at Somerset in southwest England and start operations in 2026.

The plant will entail an investment of £4 billion and have an initial output of 40GWh, meeting almost half the battery needs the UK is estimated to have by 2030.

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In a statement, British Prime Minister Rishi Sunak said the decision was a "testament to the strength of our [the UK's car] manufacturing industry and its skilled workers."

"With the global transition to zero emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology whilst creating as many as 4,000 jobs, and thousands more in the supply chain," Sunak said.

N Chandrasekaran, Chairman, Tata Sons, said the decision strengthened the company's ties to the UK and added that the group was deeply committed to a sustainable future across its businesses.

"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, JLR," he said in a statement.