Tata Group Investing Rs 42,500 cr to Establish Battery Manufacturing Plant ‘Gigafactory’

On Wednesday, the Tata Group made a significant announcement of investing 4 billion pounds (approximately Rs 42,500 crore) in establishing a flagship factory for manufacturing batteries. This factory will cater to the needs of Jaguar Land Rover (JLR) and other automobile manufacturers. The gigafactory, to be located in Bridgwater, Somerset, southwest England, was preferred over a rival location in Spain. With a capacity of 40GWh, it will be one of Europe’s largest battery factories and will be Tata’s first outside of India. Read More Business News on our website.

The primary purpose of this plant is to supply battery cells for JLR’s future electric vehicle models, including popular brands like Range Rover, Defender, Discovery, and Jaguar. Production is scheduled to commence in 2026.

Tata is said to have requested around £500 million in state assistance from the UK government, which includes subsidies for the factory’s high-energy consumption, a one-time grant from the automotive transformation fund, and improvements to the site’s infrastructure.

The UK government has not disclosed the exact amount of subsidies provided to Tata, but it will be published as part of regular transparency data. The government sees this investment as a significant milestone for the UK automotive industry since it could create up to 4,000 new direct jobs and numerous indirect jobs in the supply chain.

The gigafactory’s strategic focus will be on using renewable energy sources and adopting resource-efficient processes, such as battery recycling, to establish a circular economy ecosystem. It aims to achieve 100% clean power for its operations.

UK Prime Minister Rishi Sunak expressed his delight over Tata’s decision, stating that it will not only generate skilled jobs but also boost the country’s position in the global transition to electric vehicles, supporting clean industries of the future.

The establishment of this gigafactory is crucial for the UK’s electric vehicle industry, as it is projected to provide nearly half of the country’s required battery production by 2030, according to estimates by the Faraday Institution.