Proactive Investors - Jaguar Land Rover's Indian owner Tata Group is reportedly set to build a 'gigafactory' in Somerset to manufacture batteries for its electric vehicles.
Tata chair Natarajan Chandrasekaran is scheduled to meet prime minister Rishi Sunak next week, with the final decision expected to be based on the size of the state support package, the Financial Times reported.
The battery factory will get roughly £500mln of public support, according to Sky News, which could vary as much of it will be in the form of guarantees for low energy costs.
JLR will build the plant near the M5 motorway in Bridgwater, according to the reports, with its size only second in the UK after Nissan’s battery factory in Sunderland.
Tesla boss Elon Musk looked at the UK's South-West as a potential location for a gigafactory in 2021, making a number of trips to the area among other sites in the country, with the 600-acre Gravity business park on the site of a former Royal Ordnance factory near Bridgwater mooted as the perfect potential home.
The news would be a boost to the UK automotive sector after the collapse of battery startup Britishvolt, which had several meetings with the government before collapsing in January after being unable to access a promised £100mln public grant.
Motor manufacturers are among many sectors that have been calling on Downing Street to provide more support amid attractive green industrial packages being offered by the US and Europe.
The Climate Change Committee, the UK government’s advisers, warned in a report this week the UK risks missing out on new green industries by failing to develop the necessary workforce skills.