Tata Seeks £500m For UK Battery Plant

Snapshot

◊ Jaguar Land Rover ‘wants £500m’ Government aid to build UK-based battery plant.

◊ The Financial Times reports TATA is in advanced negotiations with Government Ministers over the huge investment.

◊ TATA is reported to be deciding between UK and Spain for the new battery plant.

JLR has reportedly asked the government for state aid to help fund a UK-based battery factory – and wants an answer within weeks.

TATA is reported to be demanding an aid package that exceeds £500m to include grants, help with energy costs and cash for R&D.

A report in the Financial Times says JLR parent company TATA is currently weighing up whether to build the factory somewhere in the south west of England, or in Spain.

TATA chief financial officer PB Balaji announced plans to produce electric vehicle batteries in Europe in January at the Auto Expo 2023 in Delhi. At the time, the plant’s location was not disclosed, but the plans were for a factory that would make batteries primarily for JLR and TATA Motors, and also sell them to the wider market.

A Government official told the paper: ‘We are engaging with them – whether or not the talks go anywhere depends on whether a final amount can be agreed.’ Officially, neither parties would comment on the record about the discussions to the Financial Times.

It comes days after Australia-based startup Recharge Industries took over the failed Britishvolt business and pledged to build a gigafactory at Blyth. But Recharge Industries is focused initially on the power storage and defence industries, with plans later on to make batteries for cars – far different from Britishvolt’s original aims.

That leaves the UK with only one battery plant, a Chinese-owned operation next to the Nissan factory in Sunderland. Britishvolt was offered £100m in state aid before it collapsed. The Financial Times says the Government has £850m banked ready to invest in battery makers in the UK.

Nissan is said to have been handed £100m for its EV investment in Sunderland and Stellantis got £30m to make electric vans at Ellesmere Port. .

Editor - Information for this story sourced from Car Dealer Magazine UK and British daily newspaper The Financial Times.