Thousands of new jobs are set to be created when a multi-billion pound electric car battery factory is built between Burnham-On-Sea and Bridgwater.
Jaguar Land Rover-owner Tata has today announced plans to build its flagship electric car battery factory in Somerset at the Gravity business park just off M5 junction 23 at the 616-acre former Royal Ordnance Factory site.
Tata said it will invest £4bn in the site but it is understood that the government is providing subsidies worth hundreds of millions of pounds.
Some in the car industry have described the plant as the most important investment in the UK automotive sector since Nissan came to Britain in the 1980s.
The investment could lead to the creation of thousands of new jobs around Bridgwater and the Burnham-On-Sea area. But its significance lies in the boost it will give to the car manufacturing sector as it transitions from petrol and diesel to making electric vehicles.
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.
The government has been criticised for lacking a clear industrial strategy and falling behind the US and EU in attracting investment in low-carbon technologies.
Some industry insiders hope the Tata battery investment will open the door to further battery investments in the UK.
The UK currently only has one plant in operation next to Nissan’s Sunderland factory, and one barely on the drawing board in Northumberland.
Another proposed battery manufacturer, in the north east of England, Britishvolt, went into administration earlier this year.
By contrast the EU has 35 plants open, under construction or planned. The new factory in Somerset will initially supply batteries for a new range of electric Jaguar and Land Rover models.
Tata Group, an Indian multinational, did consider a rival site in Spain for the battery plant. Its decision to choose the UK is likely to be viewed as a big win for Britain by the government.
A UK government spokesperson said it would not comment on ongoing negotiations with a private company.
Parliament’s cross-party Business and Trade Committee is holding an inquiry into the UK’s electric vehicle battery manufacturing sector. Its chairman Darren Jones said Tata’s decision to site the new plant in the UK was “very welcome” but raised questions over the scale of the subsidies provided.
“We will want to reflect, however, on the subsidy package that was required to secure this decision and if this approach is scalable to meet the need for further battery manufacturing sites for other car companies across the UK.”
Those concerns were echoed by the FairCharge group, which represents other companies in the electric vehicle sector.
FairCharge’s founder, Quentin Willson, said there was a fear in the industry that Tata’s investment could “sweep up” all available government support. “I truly hope that other companies in the battery, critical minerals, charging and EV supply chains won’t be neglected,” he said.
