Tata is expected to announce on Wednesday that it has chosen the United Kingdom as the location for its new electric vehicle (EV) battery plant, according to a report by Reuters. The decision comes after months of speculation between a site in Somerset, England, and one in Spain, with the chosen location set to supply a new range of electric Jaguar and Land Rover vehicles.
Tata’s move to establish an EV battery plant in the UK would be a significant win for the country’s automotive industry.
Additionally, homegrown battery production will help British automakers comply with post-Brexit trade rules, requiring them to source more electric vehicle components locally to avoid tariffs on UK-EU trade starting in 2024.
The UK government is reportedly planning to provide subsidies worth hundreds of millions of pounds to Tata for the battery plant. While the decision to invest in battery production in the UK is generally welcomed, some members of parliament, such as Darren Jones, chair of the business committee, expressed the need for further reflection on the subsidy package required to secure the investment.
“The decision by JLR to invest in battery production in the UK is very welcome. We will want to reflect, however, on the subsidy package that was required to secure this decision,” Darren Jones, chair of parliament’s business committee, said.
Tata’s choice of the UK for its battery plant will also serve as a boost for Prime Minister Rishi Sunak’s government, which has set ambitious net-zero goals. The proposed site for the plant is owned by Salamanca Group, a privately held merchant banking business.
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