UK Approves £380m Support for Somerset Battery Gigafactory to Supply Jaguar Land Rover

The UK Government handed over a £380 million subsidy to Agratas, Tata's battery business, for a new electric vehicle battery factory in Somerset. The government announced the funding earlier this month. Documents published by the Competition and Markets Authority showed officials feared the UK car industry would be badly damaged if the Jaguar Land Rover deal collapsed.

Officials from the Department for Business and Trade warned that losing the project could have pushed JLR closer to moving production abroad. Electric cars are cheaper to build when factories are close to battery plants. Officials believed Spain was a serious rival bidder for the investment.

The Somerset gigafactory site will supply batteries for Jaguar Land Rover and other carmakers. 2 billion. It was first announced with a cost of £4 billion in 2023.

JLR strongly denied it had threatened to leave Britain. " The CMA's subsidy advice unit questioned some of the Government's claims. Under UK law, the regulator must review subsidies above £25 million.

A Government source insisted the papers only explored a hypothetical scenario and there was never any confirmed plan for JLR to quit Britain. GB News reported the details from the released documents. JLR employs around 33,000 workers across the country.

Its Solihull plant in the West Midlands builds Range Rover models and future Jaguar electric cars. Its Halewood factory on Merseyside produces vehicles including the Discovery Sport. Tata Sons received £500 million from the Government to help modernise the Port Talbot steelworks in Wales.

Industry expert Andy Palmer said it is the nature of car companies to seek the lowest total cost of delivery, which naturally includes access to grants, and shareholders demand that alternatives are sought and competitiveness is proven. Palmer argued Britain needed a wider industrial strategy rather than offering support only to major companies, and a system that backs the whole ecosystem, not just the biggest names.

" Sales of the electric Range Rover are expected to begin later this year.

Orders for Jaguar's new electric models are due to open in 2027.