Tata Group to invest over

£4 billion in UK gigafactory
creating thousands of jobs
Submitted By
EPGPKC09076 ANKITA S RATHI
EPGPKC09096 KIRAN KUMAR
EPGPKC09085 DEEN DAYAL B
EPGPKC09107 RAJESH P
EPGPKC09116 SHERIN SAJ
EPGPKC09126 VINAYAK CS
Why UK?
ELECTRIFICATION IS CENTRAL TO JAGUAR LAND
ROVER’S STRATEGY TOO. BY 2030, THE RANGE
ROVER'S DISCOVERY AND DEFENDER WILL BE
AVAILABLE IN 100% ELECTRIC FORM, AS WILL ALL
JAGUAR MODELS. JLR HAS SOLID ROOTS IN THE UK
AND EU, WITH TWO DESIGN AND ENGINEERING
SITES, THREE VEHICLE MANUFACTURING
FACILITIES, AN ENGINE MANUFACTURING CENTRE,
AND A BATTERY ASSEMBLY CENTRE.
INDIA'S TATA HAS EXTENSIVE STEEL INTERESTS IN
THE UK INCLUDING THE PORT TALBOT PLANT IN
SOUTH WALES AND THE GOVERNMENT WILL ALSO
OFFER AROUND £300M TO SUBSIDISE, UPGRADE,
AND DECARBONISE THOSE OPERATIONS. ALONG
WITH ADDITIONAL ENERGY DISCOUNTS , IT WILL
BRING THE TOTAL INCENTIVE PACKAGE TO TATA
CLOSE TO £800M. WHILE THE TWO INVESTMENTS
ARE NOT ANNOUNCED AT THE SAME TIME, THE TWO
PROJECTS ARE LINKED.
 More options for
sourcing EV
More options
battery raw
for sourcing
materials
EV battery
raw materials
 JLR's Vehicles wholesale by region (units) 2023

90000

80000

70000
UK is more
closer to
60000

50000

40000 major JLR

30000

20000
markets
10000

0
North America Europe UK China Other regions
Significant operational
benefits by keeping the
factory closer to JLR
manufacturing facilities

Five out of six main Jaguar Land Rover's

facilities for R&D, manufacturing and
vehicle assembly are in UK
Business regulation and practices
• Since Tata's Jaguar Land Rovers are Agratas' primary client and the majority of JLR's plants
are in the UK, this move will help the company in complying with the rules of origin clause,
which requires that 55% of a vehicle's value be obtained domestically, mostly in the UK and
EU.

• A 10% import duty will be imposed if the value is not met.

• EV batteries must catch up to normal battery targets by January 1, 2027, meaning that 65%
of the cell's materials and 70% of the pack's materials must come from within the country.
EV Business Boom in UK
• UK EV market size is 3.15Bn USD in 2020 and expected to grow 7.88Bn USD in 2027,
market is expanding rapidly leaving big opportunities for the EV Battery business.
• UK govt committed to achieve net zero carbon emission by 2050 by promoting EV in the
country
• Committee for Climate change proposed all new vehicles to be EV by 2035.
• UK govt (CCC) gearing up installing the charging stations in fast phase.
• UK prime minister who is of Indian origin gives a positive note and extends his welcome to
the initiative by TATA.
Economic Viability
• JLR plans to invest £15 billion over the next five years in developing electric cars and
autonomous-driving features.
• UK is the largest market for Tesla in Europe, 800 million combined subsidies has been
announced by UK government.
• Discussion with multiple start ups. AESC will reportedly supply the technology for the first
generation of batteries that will be manufactured at the gigafactory.
• Tata plans to fund the project with a combination of equity and debt.
• The Faraday Institution has forecasted that the demand for batteries in the UK will surpass 100
GWh per year by 2030.
• Tata’s push adds to a host of carmakers like Mercedes-Benz Group Ag, Stellantis NV and
Nissan Motor Co., who have mostly chosen to work with long-standing battery makers in scaling
up Europe’s battery supply.
• Challenges from finding enough skilled workers, equipment and critical minerals.
Rationale behind Tata’s UK-EV Investment
• The electric vehicle (EV) battery facility established in the United Kingdom is designed to
serve not only the Jaguar Land Rover plants but also other manufacturers across the UK
and Europe.
• The anticipated location for the new plant is Somerset in southwest England, while the
existing Jaguar Land Rover factories are situated near Birmingham in central England.
• Scheduled to commence operations in 2026, the factory will supply batteries for JLR's
upcoming electric models, including the Range Rover, Defender, Discovery, and Jaguar
brands, according to the government.
• The plant is set to provide almost half the battery production needed by 2030, before the
government introduces a ban on the sale of new diesel and petrol cars.
Government Incentives
• The production of batteries within the country will assist automakers in adhering to post-Brexit trade
regulations, which mandate increased sourcing of electric vehicle components locally to avoid tariffs on UK-EU
trade starting in 2024.
• The UK government is anticipated to offer subsidies totaling approximately £500 million to the Tata Group in
order to bolster a £4 billion battery factory within the country.
• The details of government support for Tata Sons, including financial support information from the Automotive
Transformation Fund (ATF), the Advanced Propulsion Centre (APC) competitions, and British Industry
Supercharge Support, will be disclosed in due course as part of government’s regular transparency data.

Labor :
● This investment will create 4000 highly skilled jobs in UK and thousands of jobs across the supply chain.
● UK is investing in education, upskill their existing talent pool to attain the competencies to match the
changing skill demand.
● UK car factories employ around 182,000 people. However, many of the jobs are tied directly to making internal
combustion engines or petrol and diesel cars. Shifting to battery technology will help the industry to stay
the same size.