India’s Tata Group plans to invest over £4 billion (₹42,422 crore) in a large-scale UK facility for electric vehicle (EV) battery production. This marks a significant stride in the UK’s ambition to secure its EV battery supply, transitioning from gasoline and diesel vehicles.

Why It Matters? The government predicts the facility will create roughly 4,000 direct jobs and supply batteries for Jaguar Land Rover, a Tata Motors subsidiary. It’s also eyeing other UK and European customers. Beyond direct employment, the factory is expected to generate thousands of jobs in related sectors, like raw minerals and battery materials.

The government considers this investment critical for boosting the UK’s battery production capacity for long-term EV industry support. It anticipates the facility’s initial 40 gigawatt-hour output to meet nearly half of the UK’s battery production needs by 2030, as estimated by the Faraday Institution.

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Gigafactories and the Elon Musk connection: One of Europe’s largest facilities, the Tata plant plans to start production in 2026. Tesla CEO Elon Musk popularized the term “gigafactories” for these large-scale EV battery production plants.

Reportedly, the government plans to subsidize Tata’s project significantly and will release specific details about the support later.

Industry leaders welcomed the news, with Mike Hawes, the Society of Motor Manufacturers and Traders’ chief executive, stating that the move strengthens the UK’s commitment to EV production and is essential for anchoring broader vehicle production in the UK in the long term.

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