Tata Motors Limited (NYSE:TTM)’s new Somerset-based electric vehicle (EV) battery plant will be among the largest in Europe, marking a huge confidence boost for the UK, according to Rishi Sunak.
As plans for the £4bn site were unveiled on Wednesday, the prime minister hailed the boost they would provide for the UK’s EV sector.
“Tata’s decision to build their new gigafactory here in the UK – their first outside of India – is a huge vote of confidence in Britain,” he said.
Pointing to the thousands of jobs set to be created at the plant, Sunak also discussed how the plans would help the UK lead in the global shift to EVs.
“With this strategic investment, Tata further strengthens its commitment to the UK,” chair Natarajan Chandrasekaran said.
“[This is] alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive.”
Tata’s new factory will cater to both the UK’s and EU’s EV industries, providing battery power units and electricity storage solutions from 2026.
Subsidiary Jaguar Land Rover will be the factory’s key customer though, Tata said, amid the group’s shift toward 100% clean power.
“The plant will employ innovative technologies and resource-efficient processes like battery recycling to recover and reuse all the original raw materials,” Tata added.
Given the UK’s struggle so far to attract EV developers, environmental group Green Finance Institute dubbed the plan as “an important foundation for building a thriving battery industry”.
However, it must pave the way for further public investment, the group said, with Tata having previously threatened to build the factory elsewhere if the government hadn’t offered support.