Tata Group confirms plans to build gigafactory for batteries in the UK

The owner of Jaguar Land Rover has unveiled plans to build an electric car battery factory in the UK.

Tata Group says it's planning to invest more than £4bn, with Prime Minister Rishi Sunak declaring that the new plant in Somerset will create thousands of skilled jobs for Britons across the country.

The deal is the culmination of months of talks with the government over taxpayer subsidies to fend off reported competition for the investment from Spain.

It marks a step in the right direction for UK ministers amid mounting challenges over the transition to electric powertrains, as the clock ticks down to the 2030 ban on the sale of new cars using petrol or diesel.

According to Tata Group, this marks one of the largest-ever investments in the British automotive sector, and the gigafactory will deliver half of the battery production needed by 2030.

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This is the company's first gigafactory outside of India - and Mr Sunak said it was an "incredibly proud" moment.

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"Tata Group's multibillion-pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and its skilled workers," the PM added.

"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."

The new gigafactory in Bridgwater will supply Jaguar Land Rover's future battery electric models - including the Range Rover, Defender, Discovery and Jaguar brands, with the potential to also supply other car manufacturers.

Production at the new facility is due to start in 2026.

As well as being one of the largest investments in the British automotive sector, at 40GWh, the new gigafactory will be also be one the largest of its kind in Europe.

Mr N Chandrasekaran, chairman of Tata Sons, said he was "delighted" with the announcement, adding that it "strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive".

Chancellor Jeremy Hunt said it was a "huge vote of confidence in the UK" and it "shows we're on the right track, backing the sectors that will underpin our future prosperity for decades to come."

Asked about the factory this morning, Energy Secretary Grant Shapps told Sky News the investment was "probably the biggest ever UK car investment, or certainly the biggest for 40 years".

Unite General Secretary Sharon Graham said the new factory was a "welcome development" but criticised what she called a "a last minute.com approach to our industrial strategy".

"The US and Europe have clear, proactive plans for jobs and investment," she said.

"We cannot continually lag behind. The government must seize on today's good news to put forward a strategic long-term industrial plan that will be enacted as soon as possible.

She added: "As part of a comprehensive industrial strategy, the government must ensure the giga-factory is constructed with UK steel. There must also be reform of the sky-high energy business costs that are proving to be a serious risk to the future of manufacturing in the UK."

Speaking to Sky News, he said it has taken nine months of work to bring the gigafactory to the UK, and had required some government investment as it creates jobs.

However, he refused to say how much support the government gave, saying: "The exact numbers on this will come out in the normal way; because of the commercial sensitivity they have to be released in the usual way.

"But it's not really just money," he said, saying research capability also played a part.

"They were impressed by our plans, amongst other things, to drive down energy prices," he said, adding that the factory could also have gone to Spain.

The Tata announcement comes as Mr Sunak faces three by-elections on Thursday, including one in Somerset and Frome - a constituency close to Bridgwater, the site of the new factory.

-sky news