Tata Group, the parent company of Jaguar Land Rover (JLR), appears to be favouring the UK over Spain for its major electric vehicle (EV) battery plant, says a recent media report.

What Happened? According to a Bloomberg report, the development follows a support package offered by the UK government. While the decision isn’t final, a choice in the UK’s favour could secure the future of JLR’s plants in the country.

This would be a big win for the UK government, given the Spanish authorities were vying for the same investment.

The proposed plant, potentially located in Somerset, England, would produce batteries for JLR’s forthcoming fully electric models, set to launch in 2024.

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Per Bloomberg, this comes at a critical time for the UK, which has struggled to draw substantial auto-industry investment post-Brexit, while many manufacturers have relocated production to other countries amidst a significant shift towards electrification.

Stellantis NV, currently adjusting its Ellesmere Port site for electric van production, warned that UK operations might cease if manufacturing costs became uncompetitive and unsustainable.

In 2021, BMW announced its plans to move production of electric Mini hatchbacks from Oxford to China, while Honda Motor Co. closed its Swindon car factory. As of now, the UK only hosts four major car manufacturers: Jaguar Land Rover, Nissan Motor Co., BMW, and Toyota Motor Corp.

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