India’s Tata Sons is planning to build a 40GW battery cell gigafactory with an investment of around $5.2 billion that could one of Europe’s largest cell manufacturing sites when it begins production in 2026.
Tata Sons is the principal investment holding company and promoter of the diversified salt-to-software Tata Group.
The UK’s government reportedly offered substantial financial subsidies to attract Tata Group to invest in the country, but officials declined to comment citing commercially sensitive nature of the information, newswire AP said in the report.
As per the report, automobile companies in the UK have warned in May that it would struggle to make electric vehicles in the country because of the changes to trading relations under the Brexit deal.
They also wrote to Parliament that it would face 10% tariffs when exporting electric vehicles to Europe and said it was vital to reinforce the competitiveness of the UK by establishing battery production.
Commitment to Electric Mobility
According to Tata Group, this investment of over £4 billion is an integral part of the Indian major’s commitment to electric mobility and renewable energy storage solutions and establishes a competitive green tech ecosystem in the UK at scale.
Salt-to-Software also owns the popular English automotive brand Jaguar and Land Rover.
Commenting on the development, N Chandrasekaran, Chairman of Tata Sons, said, “The Tata group is deeply committed to a sustainable future across all of our business.”
He said, “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, Jaguar Land Rover.
He said, 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.
Largest ever Investment
Commenting about the announcement, UK Prime Minister Rishi Sunak, said: “Tata Group’s decision to build their new gigafactory here in the UK, their first outside of India, is a huge vote of confidence in Britain.
“This will be one of the largest-ever investments in the UK automotive sector.
“It will not only create thousands of skilled jobs for Britons around the country, but it will also strengthen our lead in the global transition to electric vehicles, helping to grow our economy in clean industries of the future.”
The battery gigafactory will produce high-quality, high-performance, sustainable battery cells and packs for a variety of applications within the mobility and energy sectors.
“The company’s strategic growth plans for its flexible manufacturing capacity will begin with a rapid ramp-up phase and the start of production in 2026.
He said, the gigafactory intends to maximise its renewable energy mix, with an ambition for 100% clean power.
According to Tata Group, the gigafactory intends to maximise its renewable energy mix, with an ambition for 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 to deliver a truly circular economy ecosystem.