Tata Group leaning towards UK for major battery plant, boosting Jaguar Land Rover’s future: Report

Tata Group, the parent company of Jaguar Land Rover (JLR), is reportedly leaning toward choosing the UK over Spain for a major battery plant dedicated to electric vehicles. According to sources familiar with the matter, Tata is favoring a factory in England after the UK government provided a support package to facilitate the investment.

While no final decision has been made, the potential selection of the UK by Tata would secure the future of JLR’s plants in the country and represent a significant victory for the government. Spanish authorities were competing to win the investment, but if Tata chooses the UK, the battery plant will be located in Somerset and will manufacture batteries for JLR’s upcoming range of fully electric models set to launch in 2024.

The UK has been facing challenges in attracting substantial investment in the automotive industry following Brexit. Many manufacturers have shifted production to other countries in response to the growing demand for electric vehicles. Stellantis NV, for instance, warned that operations in the UK could be at risk if manufacturing costs became uncompetitive and unsustainable. BMW also announced plans to relocate production of electric Mini hatchbacks from Oxford to China, while Honda Motor Co. closed its car factory in Swindon in 2021.

Securing the battery plant investment would not only boost the UK’s automotive industry but also contribute to the country’s efforts to transition toward electrification. With the closure of several automotive plants, the UK currently has only four major manufacturers: Jaguar Land Rover, Nissan Motor Co., BMW, and Toyota Motor Corp.

Tata Group and the UK government have yet to provide official comments on the matter. However, if Tata’s inclination toward the UK solidifies, it could signal a positive turning point for the country’s electric vehicle manufacturing landscape and strengthen its position in the global market.