£380m funding awarded for giant gigafactory that will create batteries for JLR’s electric vehicle production

Business Secretary Peter Kyle announced the funding in a visit to Agratas, which is a subsidiary of JLR owner Tata, in Somerset on Thursday April 9.

The project aims to strengthen economic security and cut Britain’s reliance on imports by turbocharging domestic battery production and generating around £43 billion worth of economic growth over a 25-year period when the facility is in full operation.

The site will support 4,200 direct jobs and thousands more in the supply chain, as well as unlock 300 apprenticeships.

Earl Wiggins, vice president of manufacturing operations UK for Agratas, said: “We welcome the UK Government’s investment as we build a battery manufacturing facility that will play a vital role in delivering net zero and strengthening the UK’s position as a global leader in battery manufacturing.

“This funding will support the development of our Somerset facility, enabling us to produce battery cells for our anchor customer, JLR (Jaguar Land Rover). Over the next year we will have over 2,200 people working on the site, and that growth will continue over the coming years.”

Luxury car maker JLR, headquartered in Coventry, has large manufacturing bases in the West Midlands - at Castle Bromwich, Solihull and at i54 near Wolverhampton where it is moving towards an all-electric manufacturing facility as part of its £15 billion 'Reimagine' electrification programme.

Mike Hawes, chief executive of SMMT (Society of Motor Manufacturers and Traders), said of the funding announcement: “Recent global events have highlighted the need for resilient supply chains, making this new investment in the sector both timely and important. The UK has a highly skilled and innovative automotive industry, but long‑term competitiveness depends on a policy framework that encourages investment.”

He said the funding “demonstrates strong government backing for one of the UK’s most vital industries”.

Mr Kyle said: “This government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country - helping to boost economic growth and our resilience, secure jobs and put more money in people’s pockets.

“In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond.”

Since the launch of the government’s Modern Industrial Strategy more than £360 billion of private investment has been secured across its key sectors, supporting up to 120,000 jobs.

The government says it is also cutting electricity costs for energy-intensive manufacturers, reducing unnecessary planning delays and overhauling regulation that holds back ambitious businesses.

It is also injecting £47 million worth of support for key R&D battery projects through the Battery Innovation Programme to create skilled jobs, a stronger supply chain and position the UK as a globally competitive destination for battery manufacturing.

Auto businesses will also benefit from a £190 million boost to ensure the automotive industry remains ahead of the competition on the global stage. Start-ups and well-established firms including Jaguar Land Rover and Nissan have been awarded £90 million in DRIVE35 funding to ramp up innovative prototype and cutting-edge projects - strengthening firms’ technological capabilities and improving the affordability of EVs for customers.

Meanwhile, suppliers in the West Midlands and North East can also capitalise on £100 million worth of DRIVE35 grant funding to help transition towards EV manufacturing.