Tata Group to invest more than £4 billion in Somerset gigafactory

Tata Group has announced it will invest over £4 billion in a new UK gigafactory which will create thousands of jobs.

A new multibillion-pound electric car battery factory will be built in the UK - one of the largest ever investments in the UK automotive sector. The investment, by Tata, will create up to 4,000 new direct jobs, and thousands more in the wider supply chain.

The new gigafactory, set to be built at a former MOD base in Somerset, is set to provide almost half of the battery production needed by 2030 – turbocharging UK’s switch to zero emissions vehicles.

The location, an as-yet-to-be-built business park, called Gravity, is located just off Junction 23 of the M5 motorway, on the former Royal Ordnance Factory, which was finally closed by BAE Systems (which bought it from the government in the 1990s). 

BAE Systems sold the 616-acre site to merchant bank Salamanca Group in 2017 which has plans to develop it into a business park.

The UK has been chosen as the home of Tata Group’s first gigafactory outside India.

The gigafactory will secure UK-produced batteries for another Tata Sons investment, Jaguar Land Rover, as well as other manufacturers in the UK and Europe.

The new gigafactory, at 40GWh, will be one of the largest in Europe. It will create up to 4,000 highly skilled jobs, as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals, helping grow the economy and take forward the UK’s commitment to net zero.

Prime Minister Rishi Sunak said: "Tata Group’s multi-billion-pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and its skilled workers.

"With the global transition to zero emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology whilst creating as many as 4,000 jobs, and thousands more in the supply chain.

"We can be incredibly proud that Britain has been chosen as home to Tata Group’s first gigafactory outside India, securing our place as one of the most attractive places to build electric vehicles."

Mr N Chandrasekaran, Chairman, Tata Sons, added: "The Tata Group is deeply committed to a sustainable future across our business.

"I am delighted to announce the Tata Group will be setting up one of Europe’s largest battery cell manufacturing facilities in the UK. Our multi-billion-pound investment will bring state-of-the-art technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, JLR.

"With this strategic investment, the Tata Group further strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive.

"I also want to thank His Majesty’s Government, which has worked so closely with us to enable this investment."

The investment of more than £4 billion represents a historic moment for the UK’s growing electric vehicles industry. The new gigafactory will supply JLR’s future battery electric models including the Range Rover, Defender, Discovery and Jaguar brands, with the potential to also supply other car manufacturers. Production at the new gigafactory is due to start in 2026.

This investment will be crucial to boosting the UK’s battery manufacturing capacity needed to support the electric vehicle industry in the long term. With an initial output of 40GWh it will also provide almost half of the battery production that the Faraday Institution estimates the UK will need by 2030.

Phil Smith, Managing Director of Business West, said: “The announcement of the Government’s agreement with Tata Group to build a new gigafactory in Somerset is welcome news for the region’s businesses. 

“Gravity and the Tata gigafactory, which will predominantly supply Jaguar Land Rover, will drive forward the nation’s ambitions to decarbonise transport and support the country in its journey to Net Zero through advanced battery manufacturing.

“It’s a real landmark moment for the UK’s clean growth economy and will create up to 7,500 jobs while putting this region at the forefront of the electric vehicle revolution. 

“The South West, with its ecosystem of economic, innovation, academic and infrastructure assets, is the ideal location for this major industrial investment. The nearby universities of Bristol, West of England, Bath, Exeter and Cardiff, plus Bridgwater & Taunton College, means Gravity will have a pool of local talent it can work with to ensure the region plays an integral role in supporting young people to develop the right skills to further decarbonise our economy. 

“This is the leading principal behind the Local Skills Improvement Plans (LSIPs), which Business West delivers in the West of England, and it will be fantastic to see employers and colleges working together to ensure employers are making use of these local skills.”