Tata Group expected to pick UK as site for new JLR battery plant: Report

The Tata Group is expected to pick the UK as the preferred site for the lucrative electric battery plant to supply its Jaguar Land Rover (JLR) requirements, a media report said on Wednesday.

It will mark a significant investment for the UK automotive sector, one that UK's Prime Minister Rishi Sunak-led government has been keen to bag with ongoing discussions around offering an incentivised economic environment for the multi-billion-pound plant.

According to the BBC, Somerset in south-west England is the expected location of this new Gigafactory, which will generate an estimated 9,000 jobs for the local economy.

Gigafactory is a generic term referring to facilities that produce batteries for electric vehicles on a large scale.

Sources familiar with the matter told BBC that although the deal has yet to be signed, engagement has moved from negotiations to drafting and choreography of how the landmark agreement will be presented.

At a media event at JLR's Gaydon base in the West Midlands region of England last month, JLR Chief Executive Adrian Mardell told reporters that the Tata Group is clear the new Gigafactory is going to be in Europe, with a final destination yet to be decided.

The important thing is our underpinning of [battery] supply is inhouse we are the anchor customer and absolutely have equity in making sure that the right decisions are made. Wherever it [factory] goes will be an optimised proposal for us, he said.

Spain was reportedly the other European country in the running as a location for the much-anticipated Gigafactory.

The yet-to-be-confirmed decision to choose Somerset will be presented as a major achievement by the British government, which is expected to offer millions of pounds in subsidies to attract this major investment to the country's shores.

The subsidies are expected to be in the form of cash grants, energy subsidies and other training and research funding.

Tata's extensive steel interests in the UK, though unrelated, are believed to also be factored into the mix of the industrial support package to save and create jobs in the UK in a tough economic climate.

Downing Street said it does not comment on commercially sensitive matters.