The UK has granted £380 million to Tata’s Agratas for a gigafactory in Somerset.

The UK government has announced a £380m ($510.76) grant to Agratas, Tata Group’s battery production division, to assist in building a gigafactory in Somerset, located in south-west England.

This facility, currently under construction, aims to provide batteries for Jaguar Land Rover vehicles and is anticipated to be one of the largest battery manufacturing locations in Europe.

The initiative is expected to create 4,200 direct jobs, in addition to thousands of positions in the surrounding supply chain, and will support 300 apprenticeships through a specialized battery manufacturing training program.

Officials project that the plant could generate around £43bn in economic value over the next 25 years once it operates at full capacity.

The grant is part of broader government efforts to boost domestic battery production and facilitate the transition to zero-emission vehicles.

During a site visit, UK Business Secretary Peter Kyle announced the funding, calling it a flagship initiative under the government’s Modern Industrial Strategy.

Kyle emphasized the government's commitment to supporting future industries by investing in automotive companies, small and medium-sized enterprises, and battery manufacturers throughout the country to enhance economic growth, job security, and increase household incomes.

To date, the Modern Industrial Strategy has secured over £700m in investments for advanced manufacturing and attracted more than £360bn in private funding across key sectors, which are linked to up to 120,000 jobs.

Alongside the Agratas funding announcement, the government also introduced additional industry support initiatives.

These include £47m for battery research and development via the Battery Innovation Programme and £190m aimed at the automotive sector.

Of the automotive funding, £90m has been designated through DRIVE35 for companies like Nissan and Jaguar Land Rover for prototype and innovation projects, with an additional £100m focused on assisting suppliers in transitioning to electric vehicle production.

Other support measures consist of up to £16.44m for digital innovation, up to £99m to enhance digital adoption among small and medium-sized businesses, £1.4m for autonomous transport projects, and a £182m engineering skills initiative.

The government stated that the total investment aims to decrease reliance on imports, strengthen supply chain resilience, and position the UK as a competitive hub for battery manufacturing and clean energy technologies.

Earl Wiggins, vice president of Agratas UK manufacturing operations, remarked that this funding will aid in developing the Somerset facility, enabling battery cell production for their primary customer, Jaguar Land Rover. Over the next year, over 2,200 individuals will be employed at the site, with further growth anticipated in the coming years.