Tata Sons will build a 40GWh battery cell gigafactory in the United Kingdom (UK). The investment, of over £4 billion, will deliver electric mobility and renewable energy storage solutions for customers in UK and Europe. JLR and Tata Motors will be anchor customers, with supplies commencing from 2026.
When WhichEV spoke with Stellantis CEO Vincent Cobée back in January, he told us that the single biggest block to the growth and development of the European EV manufacturing industry was a lack of Government interest and investment in high-volume, local production of EV batteries at a sensible price. It now looks as though the UK will be providing a solution to that issue.
This investment of over £4 billion from Tata is part of the group’s commitment to electric mobility and renewable energy storage solutions and establishes a competitive green tech ecosystem in the UK at scale.
The chosen location will likely mean easy transportation of lithium from sources in Cornwall, as well as delivery of the finished product to JLR's production facility. For manufacturers like Nissan in the North East, it may be easier for them to get batteries from the Recharge facility being planned near Tees Valley – in the aftermath of the collapse of Britishvolt.
“Tata Group's multi-billion pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and our skilled workers”, said British Prime Minister Rishi Sunak. “Tata Group’s decision to build their new gigafactory here in the UK, their first outside of India, is a huge vote of confidence in Britain”.
Grant Shapps, the UK Government minister responsible for delivering this deal, would not comment on exactly how big a contribution the UK had made into the plant – but he did promise that details would be made available shortly, “In the usual fashion”.
Natarajan Chandrasekaran, Chairman of Tata, said: “The Tata Group is deeply committed to a sustainable future across all of our business. Today, I am delighted to announce the Tata Group will be setting up one of Europe's largest battery cell manufacturing facilities in the UK. 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 continued, “With this strategic investment, the Tata Group further strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive. I also want to thank His Majesty's Government, which has worked so closely with us to enable this investment”.
Since formally withdrawing from Europe, the UK Government has had few ‘good news’ stories on which to hang its hat, so the idea that there might be good news on inflation, a new Indo-Pacific trade deal and the creation of a huge local supply of EV batteries, in the same week, certainly lifted any prevailing gloom around Number 10.
Commenting about the announcement of the UK gigafactory, UK Prime Minister, Rishi Sunak told media, “Tata Group’s decision to build their new gigafactory here in the UK – their first outside of India – is a huge vote of confidence in Britain. This will be one of the largest ever investments in the UK automotive sector”.
“It will not only create thousands of skilled jobs for Britons around the country, but it will also strengthen our lead in the global transition to electric vehicles, helping to grow our economy in clean industries of the future”.
The news also puts to rest, the idea that UK drivers may have to pay hefty tariffs on future EV purchases. This was a distinct possibility, if the UK did not commit to major production for batteries.
The battery gigafactory should produce high-quality, high-performance, sustainable battery cells and packs for a variety of applications within the mobility and energy sectors. The company’s strategic growth plans for its flexible manufacturing capacity will begin with a rapid ramp-up phase and the start of production in 2026. The gigafactory intends to maximise its renewable energy mix, with an ambition for 100% clean power. The plant will employ innovative technologies and resource efficient processes like battery recycling to recover and reuse all the original raw materials to deliver a truly circular economy ecosystem.
It will be interesting to see how much range UK customers demand from their EVs. Independent research carried out by WhichEV shows that most Brits are happy driving up to 150 miles without a break – and that almost none of the UK’s drivers want to go past the 250 mile mark. With daily drives averaging close to 20 miles, you have to ask if a 50kWh battery is enough for most uses – given that there was a lot of talk about 100kWh batteries becoming standard.
Why does size mattery so much?
If the UK were to standardise on 50kWh per car on average, then this new facility can support the production of 800,000 EVs a year. Moving to 100kWh will necessarily reduce that to 400,000.
Stellantis has invested heavily in battery facilities in places like Mirafiori in Italy, but that may not help them avoid tariffs for cars sold in the UK – if less than 40% of the components were made in this country.
Looks like Tata has managed to get its competitors to help it build the UK’s first gigafactory.
Founded by Jamsetji Tata in 1868, the Tata Group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals. The group operates in more than 100 countries across six continents, with a mission ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust’.
In 2021-22, the revenue of Tata companies, taken together, was close to £100 billion – across a range of companies that, collectively, employ over 935,000 people.
It would be interesting to see what would happen if Tata followed up this investment in UK battery production, with the announcement that it would start to make sub-£10,000 electric vehicles available in this country.