Indian conglomerate Tata Group is reportedly expected to shortly announce its decision to choose a site in the UK as the location for its new electric vehicle (EV) battery plant.
The decision comes after months of speculation between a site in Somerset, England, and one in Spain, with the chosen location set to supply a new range of electric Jaguar and Land Rover vehicles, according to a report by Reuters.
The UK government’s reported plans to provide subsidies worth hundreds of millions of pounds to Tata for the battery plant seems to have clinched the deal for the country.
The proposed site for the plant is reportedly owned by Salamanca Group, a privately held merchant banking business.
UK welcomes Tata’s battery plant
Tata’s move to establish an EV battery plant in the UK would be a significant win for the UK’s automotive industry.
Homegrown battery production will also help British automakers to comply with post-Brexit trade rules, requiring them to source more electric vehicle components locally to avoid tariffs on UK-EU trade starting in 2024.
Though the decision to invest in battery production in the UK is widely welcomed in the country, some members of parliament, such as Darren Jones, chair of the business committee, expressed the need for further reflection on the subsidy package required to secure the investment.
Tata’s choice of the UK for its battery plant will serve as a boost for Prime Minister Rishi Sunak’s government, which has set ambitious net-zero goals.
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