Jaguar Land Rover owner set to pick UK for EV battery plant

• Move by Tata Motors would create around 9,000 jobs in Somerset 
• Britain has fallen behind in the global race to build local battery capacity 

Jaguar Land Rover owner Tata Motors is gearing up to select Britain for a multi-billion pound electric car battery plant, claiming the Indian firm would choose it over Spain.

Tata’s boss is expected to fly to London next week to finalise the deal to build the battery factory, which would employ around 9,000 people in Somerset, in the South West, the BBC report reported, without citing sources.

The Government’s business department declined to comment.

Tata Motors and its parent Tata Sons did not respond immediately to requests for comment.

A decision by Tata to choose Britain over Spain would represent a major win for  Rishi Sunak who is under pressure to make the country more attractive to carmakers.

Chancellor Jeremy Hunt last week hinted at a development on Britain’s EV battery making capacity, saying ‘watch this space’ when asked about it at an event.

Such an investment would also give a boost to the British car industry, days after major automakers including Vauxhall owner Stellantis and Ford warned that looming post-Brexit trade rules risked making it unviable.

Britain has fallen behind in the global race to build local battery capacity, threatening the future of its electric vehicle sector which requires heavy batteries to be built near car manufacturing plants.

A lack of a home-grown battery sector would also risk tariffs on British cars under post-Brexit rules that are due to come into force from next year.

Danni Hewson, head of financial analysis at AJ Bell, said: ‘A decision by Jaguar Land Rover owner Tata to locate a gigafactory in the UK looks like proof that UK car manufacturing is down but not out.

‘After years in the post-Brexit wilderness there had been signs that the sector was doomed to decay and disappointment, with warnings from Vauxhall-maker Stellantis that without changes to the Brexit deal it would be forced to relocate current EV factories.

‘Electric battery production is crucial to the future of the sector, especially as the relationship between China and the US continues to get frostier.’

She added: ‘Whilst many have taken Elon Musk’s dangled cherry of a similar UK gigafactory for Tesla with a pinch of salt, there had been real expectation that JLR’s natural home is the UK, so anything other than plumping for Britain would have been a body blow.

‘There will be plenty of questions about exactly what kind of sweetener may have been offered to ensure the UK government didn’t suffer the ignominy of seeing the plant go elsewhere in Europe, but for all those who rely on the sector for their livelihoods, there will simply be relief.’