The UK government has approved £380 million in funding for Agratas, the electric vehicle (EV) battery manufacturing subsidiary of India’s Tata Group. This allocation forms part of a wider £470 million grant package administered by the Advanced Propulsion Centre (APC), aimed at accelerating domestic zero-emission vehicle technologies and strengthening battery production capacity in Britain.
Agratas plans to use the grant to develop a 40 gigawatt-hour (GWh) gigafactory in Somerset, which is set to become the UK’s largest EV battery production facility. The site will initially supply batteries to Jaguar Land Rover, supporting Tata Motors’ luxury division, and may later expand to serve additional automotive manufacturers. By bolstering local battery output, the project is intended to enhance supply chain resilience and reduce reliance on overseas suppliers for critical EV components.
Chris McDonald, Minister for Industry, emphasized the importance of such investments: “By funding our automotive sector, we are creating the right conditions for increased investment, economic growth, and jobs across the country.” The APC, which collaborates with government and industry partners, has allocated the remaining £90 million of the grant package to various collaborative research, development and investment programs focused on zero-emission vehicles and battery technologies.
Industry analysts view Agratas’ gigafactory as a strategic asset in the UK’s transition toward cleaner mobility. The project aligns with broader national objectives to decarbonize transport, stimulate high-value manufacturing, and create skilled employment opportunities. Construction of the Somerset facility is expected to support hundreds of direct jobs during the build phase, followed by permanent positions in production, engineering and battery system development.
Agratas’ investment in Somerset reflects growing global competition to secure EV battery capacity and underscores the UK’s commitment to cultivating a robust domestic battery ecosystem. As automakers increasingly pivot to electrification, the new gigafactory is poised to play a central role in meeting future demand for high-performance, low-emission powertrains.
Source: Economic Times
