Jaguar Land Rover-owner set to build battery factory near Bristol

Plans for the new gigafactory in Somerset were revealed last month, but reports indicate an update on the proposal could be announced this week

The parent company behind Jaguar Land Rover is reportedly preparing to unveil new plans for a new ele

ctric car battery factory just an hour outside of Bristol. Tata, the Indian owner of Jaguar Land Rover (JLR), posted new job listings in the Somerset-area earlier this month which is now followed by reports the company will sign off on a deal with the UK Government to build a new EV battery plant near Bridgwater.

BBC News reports plans for this new gigafactory could be announced as soon as tomorrow (Wednesday, July 18) and the rumoured agreement is said to include “hundreds of millions of pounds” of financial help from the Government. It also has the potential to create thousands of jobs in Somerset.

It is expected to be located at the Gravity business park, a 616-acre “smart campus” currently under construction near the M5 motorway at Puriton. The factory could see electric car batteries created in Somerset, with JLR as an “anchor customer”, reportsIt is expected to be located at the Gravity business park, a 616-acre “smart campus” currently under construction near the M5 motorway at Puriton. The factory could see electric car batteries created in Somerset, with JLR as an “anchor customer”, reports

The publication reported that Tata Group had posted new job listings for a UK-based battery cell developer and a UK-based construction project manager, hinting the company is seeking to go ahead with the plans. The gigafactory could potentially be the largest single building by footprint in the UK, creating up to 40,000 direct and indirect jobs.

It was previously reported the boss of Tata flew into the UK to meet Prime Minister Rishi Sunak in June to finalise an agreement on the deal, though nothin has been heard since the initial reports. An update on the plans could come as soon as tomorrow, according to the BBC, which said insiders believe the investment will be officially announced on Wednesday.

A bidding war is suggested to have taken place between the UK and Spanish governments to snap up the deal. The Telegraph reports that the Spanish Government offered Tata a €350m (£304m) subsidy, which is reportedly the maximum amount it can currently offer as it has set a limit of €350m for battery plant financing.

The BBC reports that while the UK Government has said it does not recognise a previously reported figure of £500m in UK state subsidies, it has conceded that the potential agreement is in the hundreds of millions of pounds. This comes in the form of cash grants, energy subsidies and other training and research funding.

In May, chancellor of the exchequer Jeremy Hunt told the British Chambers of Commerce’s annual conference that “we need to have battery making capacity in the UK”. Mr Hunt said: “All I would say is, watch this space, because we are very focused on making sure the UK gets that EV manufacturing capacity.”