Tata has placed the UK on the starting grid of today’s EV race

livemint.com:

British government officials describe the Tata Group’s decision to build an electric-car battery factory in the UK as a “major vote of confidence" and a huge boost for the country’s auto industry, saying it will create thousands of jobs and help drive economic growth. For once, the hype may be partly justified. The significance of the £4 billion ($5.2 billion) project by the Indian conglomerate that owns Tata Motors should not be underestimated, though it is more of a lifeline for domestic carmakers in the UK rather than their crowning glory.

This was a deal that the UK could not afford to lose. Much local media coverage focused on the financial incentives that the British government must have offered to win the Indian conglomerate’s favour, which some reports put at £500 million— a figure that may turn out to be conservative once the full extent of support is known. Is it worth it? That’s a question of values and priorities.

If Britain wants to have a car industry, the answer is yes. The UK plans to move fully to electric vehicles (EVs) in 2030, when sales of new petrol and diesel cars will end. The battery pack is the single most expensive part of an EV, accounting for 30% or more of the cost.

If you can’t manufacture batteries, you will not have much of a domestic industry. As of last year, the UK was projected to have the ninth-largest battery output in Europe by 2030, with a mere 7% of the planned capacity in Germany, the continent’s biggest auto producer. In other words, it was heading for the status of an also-ran.