Tatas will build the first mega electric battery facility outside of India in the UK
- IBEF
- July 20, 2023
The Tata Group, which owns Jaguar-Land Rover (JLR), plans to invest around US$ 5.2 billion (4 billion pounds) in an electric car battery factory to produce 40 GWh cells annually in the UK.
This would be the first gigafactory for electric batteries by Tata outside of India. JLR and Tata Motors would be the anchor customers with supplies commencing in 2026.
According to Chairman, Tata Sons, Mr. N. Chandrasekaran stated that across all of their businesses, The Tata Group is deeply committed to a sustainable future. The Tata Group will establish one of Europe's largest battery cell manufacturing sites in the UK.
“State-of-the-art technology will be introduced to the nation owing to our multibillion-pound investment, which will support the automotive industry's transition to electric mobility, which is led by our own company, Jaguar Land Rover. With this tactical investment, the Tata Group, along with our other firms working here in the fields of technology, consumer, hotel, steel, chemicals, and automotive, further deepens its commitment to the UK,” says, Mr. N. Chandrasekaran.
According to UK Prime Minister Mr. Rishi Sunak, this would be one of the biggest investments in the UK's automotive industry ever. The Tata Group's choice to construct their new gigafactory here in the UK (their first outside of India) is a major statement of confidence in Britain. In addition to giving Britons thousands of skilled jobs across the nation, it will reinforce our leadership in the transition to electric vehicles around the world, boosting our economy's growth in the clean sectors of the future. It will advance the UK's aim to net zero and generate up to 4,000 highly trained employment, together with thousands of more opportunities in the larger supply chain for battery materials and essential raw minerals.
The production will start in 2026 and the gigafactory intends to use 100% clean power. It would also use processes like battery recycling and reuse all the original raw material to deliver a circular economy ecosystem, the Tata Group informed.
With a US$ 1.6 billion investment, the Tata Group and the Gujarat government agreed to develop a facility for lithium-ion batteries. The agreement was inked in June. A 20 Gwh initial manufacturing capacity is anticipated for the factory, which might double in the second phase of expansion. The Gujarat government and Agratas Energy Storage Solutions, a Tata business, have signed a memorandum of understanding (MoU), and construction on the project is scheduled to begin in less than three years. JLR has started on an ambitious mission to become an 'electric first' luxury manufacturer by 2030.
Its peers Audi and Volvo are eyeing 100% Battery Electric Vehicles (BEV) by 2033 and 2030 respectively, while BMW and Mercedes are eyeing 50% BEV by 2030. Analysts at Ventura Securities said that JLR is eyeing 60% BEV sales by 2030 and 100% BEV sales by 2036.
The Halewood plant in the UK will transform into an all-electric production facility, and the engine plant in Wolverhampton, UK, will produce electric drive units and battery packs for JLR's next-generation vehicles. In addition, the company is evolving its marquee brands.
JLR's wholesale sales increased by 30% in the June 2023 quarter to 93,253 units (excluding China JV), while retail sales increased by 29% year-over-year to 101,994 units as a result of improving supply conditions for electronic chips and supply limitations. It had a 185,000-unit order book.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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