Earlier reports indicated that Tata Daewoo Motors was considering both Spain and the UK as potential locations for its European battery cell factory. However, it was revealed in May that Bridgwater in Somerset, England, was the favored UK location, according to a BBC report.

The British government has confirmed Tata will establish a significant battery production facility in the country, surpassing Spain as the chosen location. The Indian conglomerate will invest over £4 billion (approximately €4.6 billion) in the battery cell factory, which is expected to generate up to 4,000 direct jobs. The factory is set to commence operations in 2026, with an initial annual capacity of 40 gigawatt-hours, supplying cells for future battery electric vehicle (BEV) models from Jaguar Land Rover (JLR) and potentially other automakers.

The UK government, in a joint statement from Prime Minister Rishi Sunak and the Department of Economy and Trade, announced that the new “gigafactory” is anticipated to fulfill nearly half of the country’s battery production requirements by 2030, supporting the transition to zero-emission vehicles. It is deemed “one of the largest investments in the British automotive industry of all time.” Tata, in its own statement, mentioned that the investment would encompass solutions for electric mobility and stationary energy storage, indicating applications beyond electric cars.

Details regarding the battery cell type, format, chemistry, and supply chain have not yet been disclosed. Downing Street referred to the Automotive Transformation Fund and the Advanced Propulsion Center as supporting the development of an internationally competitive electric vehicle supply chain and facilitating research and private investment in low-carbon vehicle supply chains. The extent of any subsidies provided to Tata was not mentioned.