Tata Group, the parent company of Tata Motors and Jaguar Land Rover, has announced its plans to construct an electric vehicle (EV) battery factory in the United Kingdom. This move comes as the group aims to meet the growing demand for EVs in the market.
The factory, projected to be based in Somerset, is expected to generate around 9,000 job opportunities. The British government has commended this initiative by Tata Group, recognizing its significant contribution to the economy.
To support the production of EVs by Tata Motors and Jaguar Land Rover, the company will invest over £4 billion in establishing local battery production. The new EV battery plant will have a capacity of 40GWh, surpassing Envision’s battery factory in Sunderland. The Faraday Institute estimates that the UK will require a local capacity of 100GWh by 2030 and 200GWh by 2040 to meet the increasing demand for EVs.
Reports indicate that Tata Group has identified a site in Somerset for the battery factory, further linking the region to battery manufacturing plants from other automotive manufacturers. Chairman of Tata Sons, N Chandrasekaran, expressed his delight in the decision to establish one of Europe’s largest battery manufacturing facilities in the UK. The company aims to produce sustainable battery cells and packs for various applications in the mobility and energy sectors.
Tata Group also plans to prioritize renewable energy sources for the factory, with the goal of achieving 100 percent clean power. Additionally, the company aims to implement in-house battery recycling, aiming for a truly circular economy by repurposing raw materials for new batteries. British Prime Minister Rishi Sunak praised Tata Group’s selection of the UK for their first battery factory outside of India, highlighting its positive impact on job creation and the growth of clean industries in Britain.
This EV battery plant will not only cater to the needs of Tata Motors and Jaguar Land Rover but also supply batteries to the broader market. The plant will produce cells using two chemistries, lithium iron phosphate (LFP) and nickel manganese cobalt (NMC), with the latter primarily designated for JLR. According to PB Balaji, Tata Motors’ chief financial officer, while the company has sufficient production plans for batteries, they will require some cell capacity in Europe.
This move by Tata Group is a significant step towards complying with European regulations for electric vehicles, which are set to become more stringent due to Brexit agreements. This includes ensuring that 45 percent of an EV’s value comes from either the EU or the UK to qualify for trade without tariffs by 2024, increasing to 65 percent by 2027.
