The UK government has confirmed a £380m ($510.76) grant to Agratas, Tata Group’s battery manufacturing business, to help fund the construction of a gigafactory in Somerset in south-west England.
The plant, which is under construction, is intended to supply batteries for Jaguar Land Rover vehicles and is expected to rank among Europe’s “largest” battery manufacturing sites.
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The project is projected to sustain 4,200 direct roles alongside thousands more in the wider supply chain, with 300 apprenticeships to be supported through a dedicated battery manufacturing training unit.
Officials expect the plant to generate approximately £43bn in economic value over a 25-year horizon once it reaches full capacity.
The grant forms part of wider government efforts to expand domestic battery production and accelerate the shift to zero-emission vehicles.
UK Business Secretary Peter Kyle announced the funding during a site visit, describing it as a flagship commitment under the government’s Modern Industrial Strategy.
Kyle said: This government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country – helping to boost economic growth and our resilience, secure jobs and put more money in people’s pockets.”
The Modern Industrial Strategy has to date secured more than £700m in advanced manufacturing investment and attracted over £360bn in private capital across priority sectors, with up to 120,000 jobs linked to those commitments.
Alongside the Agratas announcement, the government outlined further industry support measures.
These include £47m for battery research and development through the Battery Innovation Programme and £190m for the broader automotive sector.
Of the automotive funding, £90m has been allocated through DRIVE35 to firms including Nissan and Jaguar Land Rover for prototype and innovation work, with a further £100m directed towards helping suppliers shift to electric vehicle manufacturing.
Additional measures cover up to £16.44m for digital innovation, up to £99m to accelerate digital uptake among small and medium-sized enterprises, £1.4m for autonomous transport initiatives, and a £182m engineering skills package.
The government said the combined investment is intended to reduce import dependency, reinforce supply chain resilience, and establish the UK as a competitive centre for battery manufacturing and clean energy technologies.
Agratas UK manufacturing operations vice president Earl Wiggins added: “This funding will support the development of our Somerset facility, enabling us to produce battery cells for our anchor customer, JLR (Jaguar Land Rover). Over the next year we will have over 2,200 people working on the site, and that growth will continue over the coming years.”
