Tata motors chooses UK for new Jaguar Land Rover electric battery plant

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Tata motors chooses UK for new Jaguar Land Rover electric battery plant (Image: pixabay.com)
Tata motors chooses UK for new Jaguar Land Rover electric battery plant (Image: pixabay.com)

Delhi : In the face of fierce international competition, India's Tata is anticipated to announce on Wednesday that it has decided to develop an electric vehicle battery plant in Britain. To supply a new line of electric Jaguar and Land Rover vehicles, Tata had to decide between a location in southwest England's Somerset and one in Spain. A government representative and Tata both declined to comment on ongoing business negotiations and the report. The news that the plant would be revealed this week was initially reported on Tuesday.

There have been months of rumours regarding the location of the facility that will be built by Tata, a conglomerate with holdings in software, steel, vehicles, and airlines. The facility would be a huge success for Britain, which is seeking to catch up in the race to expand local electric vehicle (EV) battery capacity, which is essential for manufacturers who depend on heavy batteries being made close to their car manufacturing.

Britain has raised alarm over the U.S.'s Inflation Reduction Act, which pledges to give green sectors hundreds of billions of dollars in subsidies. Finance Minister Jeremy Hunt stated that the government lacked substantial funds for such initiatives. Producing batteries domestically will also assist British automakers in adhering to post-Brexit trade regulations, which will force companies to source more electric car components locally in order to avoid tariffs on UK-EU commerce beginning in 2024.

The government earlier stated that it was in discussions with the EU about relaxing those regulations in response to a warning from vehicle manufacturer Stellantis that, in the event of tariffs, it would be forced to close plants and lose thousands of jobs. Tata would receive government subsidies totaling hundreds of millions of pounds.

"We applaud JLR's decision to invest in battery manufacturing in the UK. However, we will want to consider the subsidy package that was necessary to guarantee this choice, according to Darren Jones, chair of the parliamentary business committee.

Tata's decision to invest in Britain would also help Prime Minister Rishi Sunak's administration, which has promised to expand the economy and has announced a number of net zero objectives, including a ban on the sale of new petrol and diesel vehicles starting in 2030.