Tata JLR set to unveil plans for electric car battery plant in UK: Report

livemint.com:

Tata Motors-owned Jaguar Land Rover (JLR) is set to announce its plans to build a flagship electric car battery plant in the UK, a source familiar with the matter said as reported by Reuters.  Tata had been choosing between a site in Somerset, southwest England, and one in Spain to supply a new range of electric Jaguar and Land Rover vehicles. Bloomberg was first to report on Tuesday that the factory was set to be announced this week.

The Gigafactory follows talks with the government on the level of financial support the Tata Group would receive in return for the investment and will be one of the most significant investments in UK automotive for decades. The BBC said the government would provide subsidies worth hundreds of millions of pounds to Tata.

"The decision by JLR to invest in battery production in the UK is very welcome. We will want to reflect, however, on the subsidy package that was required to secure this decision," Darren Jones, chair of parliament's business committee, said.

Homegrown battery production will also help British automakers comply with post-Brexit trade rules that will require them to source more electric vehicle components locally in order to avoid tariffs on UK-EU trade from 2024. Batteries typically account for more than half of the value of an electric vehicle, so a reliable supply is expected to be vital for the future of the UK car industry.

Moreover, the investment could lead to the creation of up to 9,000 jobs around Bridgwater in Somerset.  However, its significance is pitched as a big boost for the UK's car manufacturing sector as it transitions from petrol and diesel to making electric vehicles. Tata's choice of Britain would also provide a boost for Prime Minister Rishi Sunak's