He says Coventry could get a ‘significant’ sum of money.
Sir Keir Starmer says Labour are “committed” to a gigafactory in the West Midlands – in a move that could pump large sums of money into the area.
The opposition party are pledging £2 billion to part-finance eight factories across the UK under their ‘Green Prosperity Plan.’
It’s been confirmed by the Labour leader that one of those gigafactories will be in the West Midlands – but the amount of money Coventry (or the wider area) would receive hasn’t been spelled out.
The amount, however, has been described as significant.
The Labour leader said there is a “real opportunity” for a gigafactory in the region, which he said had been the “engine room of the UK” for decades.
Gigafactories make batteries for electric vehicles at a large scale, and experts predict the UK will need ten by 2040 to meet demand as more people drive these cars – although so far only one has been built.
Labour’s ‘Green Prosperity Plan’ was first announced in 2021 but was recently scaled back by Shadow Chancellor Rachel Reeves.
The party will now ‘ramp up’ to borrowing £28 billion per year in the second half of their Parliamentary term to invest in green projects if they come to power, she said on Friday, 9 June.
Asked why Coventry is particularly important, he referred to the area’s “rich tradition” as a hub for manufacturing.
Plans for a gigafactory in the region have been in motion since 2021 but no operator to produce the batteries has been found yet.
It had been hoped Jaguar Land Rover’s owner Tata would choose a site in the area for their gigafactory, but reports say they are likely to build one in Somerset instead.
Asked what would happen to the money if no private investment materialises, Starmer said: “We are absolutely certain we can get the private investment to come up alongside the amount we put in.”
This project, called the ‘West Midlands Gigafactory’, aims to be operational by 2025 and has had £1.6 million from the council so far.
There are claims it will attract £2.5 billion of investment for the region and create 6,000 jobs.
Last month West Midlands Mayor Andy Street, a key supporter of the scheme, said talks are stlil ongoing with potential operators.
But earlier this year the project called for more government support, including £200m of funding to make it viable for investors.
