Jaguar Land Rover is set to pick the UK over Spain to build a massive new electric car battery plant. BBC News reports that owner Tata Group is getting ready to sign the deal.
Tata’s chairman is reportedly scheduled to meet Prime Minister Rishi Sunak in the middle of next week. It comes as the British motor industry scrambles to boost capacity for electric cars, which are set to become very popular in the coming years.
A deal has not yet been signed for the plant in Somerset, the BBC quotes sources as saying, but an agreement is being drafted. Chancellor Jeremy Hunt last week hinted the deal could be imminent, saying: “All I would say is watch this space because we are very focused on making sure the UK gets that EV manufacturing capacity.”
A new Bridgewater-based plant could create up to 9,000 jobs. Tata was believed to be considering another site in Spain, which is a member of the European Union, unlike Britain.
A spokesman for Tata did not have any comment on the reports. It comes after Stellantis, one of the world’s largest carmakers, warned it will be unable to keep its commitment to make electric cars in the UK and could have to close factories without changes to the Brexit deal.
The Vauxhall, Citroen and Peugeot owner last week told a Commons inquiry into supply of batteries for EV manufacture that its UK investments hanged in the balance due to the terms of the trade deal. It stressed the need to “reinforce the competitiveness of the UK by establishing battery production in the UK”.
Meanwhile, earlier this year a start-up called Britishvolt, which had promised to build a massive battery factory in the north-east of England, went out of business. The company had been seen as one of the UK’s biggest hopes on the battery sector but had no previous experience of producing batteries and could not secure the money it needed.
Raj Kandola, director of external affairs at Greater Birmingham Chambers of Commerce, said: “The investment will be very welcome news for the UK, reducing our reliance on imports and providing critical production capability needed to secure a long-term future for electric vehicle production in the country.
“From a West Midlands perspective, our region is home to an extensive automotive supply chain. We will need to redouble our efforts to attract a gigafactory to the region.”
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