Tata Motors wants the UK government to splurge more than £500 million ($594 million) to build a battery factory for Jaguar Land Rover. If it doesn’t get the funds it wants, it could build the site in Spain.
British media outlets understand that Tata is pondering a partnership with Chinese battery maker Envision that could see it build and operate a factory in Somerset, UK to supply Jaguar Land Rover’s forthcoming electric vehicles with the batteries they need.
To make this happen, Tata is seeking more than £500 million in aid from the government which would include grants and support packages as well as assistance for energy costs and research funding. It has given UK ministers a matter of weeks to pledge the required financial support.
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“We . . . are engaging with them – whether or not the talks go anywhere depends on whether a final amount can be agreed,” a UK government official told The Telegraph.
Reports state that the UK government has offered Jaguar Land Rover a funding package larger than those from rivals in the European Union but higher energy costs compared to other European countries are thought to be a key issue that needs to be resolved.
If the UK government agrees to Tata’s demands, it would represent a huge investment for the country. Indeed, The Guardian reports that its ‘automotive transformation’ fund supporting the shift from combustion engines to electric vehicles is only worth £1 billion ($1.18 billion) in total.
Last year, Jaguar Land Rover and Envision were on the verge of announcing a partnership to build the battery factory in Somerset but the plans were delayed after Boris Johnson was replaced as prime minister. The plan was also delayed because Tata was also seeking British government support for its UK steel business. The government has offered £300 million ($356 million) in support for this site.
