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New UK Land Rover battery factory could create 9,000 jobs after government wins bid

Jaguar Land Rover

The UK government has reportedly secured a commitment from Tata, the owner of Jaguar Land Rover, to construct a new gigafactory.

According to senior Whitehall sources, Tata, the Indian industrial giant, has chosen the UK over Spain as the location for its massive battery factory.

The official confirmation of this decision is expected to occur during a meeting between Prime Minister Rishi Sunak and Tata chairman Natarajan Chandrasekaran next week.

Read More: Jaguar Land Rover to ramp up electric vehicle production with £15 billion investment

To support the project, the deal will involve approximately £500 million in public support, partly aimed at ensuring low energy prices for the plant.

This significant investment represents one of the largest industrial interventions in recent history.

Both the Spanish and British governments have engaged in a bidding war, offering subsidies to Tata in recent weeks.

Reports suggest that the gigafactory will likely be built in Somerset and has the potential to generate up to 9,000 jobs.

Read More: 150 Jaguar Land Rover factory workers to strike over job cuts and pay

This development takes place amidst global competition among nations to establish sufficient battery factories to cater to their respective automotive industries.

However, recent commentary from the head of collapsed cell manufacturer Britishvolt raised concerns about the UK missing the opportunity to develop a thriving battery industry.

Co-founder Orral Nadjari attributed the failure of their gigafactory plans, which were previously co-financed by the government, to government bureaucracy.

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The government swiftly dismissed Nadjari's claims, labeling them as "completely untrue."

Meanwhile, Stellantis, the parent company of Vauxhall, has called on the government to renegotiate the Brexit deal with the EU.

 In a parliamentary committee's inquiry on electric vehicle production, Stellantis cited challenges in complying with trade rules regarding the sourcing of parts.

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