Jaguar Land Rover owner Tata eyes Somerset for car battery gigafactory
Jaguar Land Rover owner Tata seems to be choosing Somerset over Spain for a giant car battery factory
Hopes for the UK’s electric car industry have been rekindled as the Jaguar Land Rover owner is about to choose Somerset over Spain for a car battery plant.
The Tata boss is expected to fly to London next week to finalize the multimillion-pound deal that Chancellor Jeremy Hunt has been pushing for months, according to the BBC.
But Whitehall sources told the Mail that negotiations were still underway to secure the most significant investment in Britain’s motor industry since Nissan came to Sunderland in the 1980s.
Elon Musk has also said he is considering the UK for a Tesla gigafactory as the electric car maker ramps up production.
Deals with Tata and Tesla would significantly bolster the UK’s electric vehicle (EV) sector, which has had a rocky ride in recent months – from the collapse of Britishvolt to the crisis surrounding the lack of electric chargers.
Location: Jaguar Land Rover is expected to choose a site near Bridgwater in Somerset (pictured) for its new car battery gigafactory
There are also lingering concerns about ‘rules of origin’, which could allow 10 percent tariffs to be imposed on EVs exported to the EU that do not meet strict criteria.
Under current plans, 45 percent of an electric car must come from the UK or elsewhere in Europe to avoid 10 percent export tariffs.
The rule, which takes effect next year, was originally designed to encourage the creation of domestic electric car battery industries and remove over-reliance on foreign players such as China and Japan.
But both the EU and the UK have not built enough factories to meet these production requirements, meaning most vehicles will not meet this standard and will therefore have to pay the tariff.
Stellantis, which owns Vauxhall and Citroen, told MPs last week it would not be able to make electric cars in the UK without changing the UK’s agreement with the bloc.
Ford and Jaguar Land Rover also argued that the shift to electric cars could be off track unless stricter regulations are delayed.
While company secretary Kemi Badenoch has said a fix would be “soon,” data from the Society of Motor Manufacturers and Traders (SMMT) underlines the magnitude of the threat.
According to the figures, more than eight in ten cars produced in the UK last month went abroad, with more than half going to the EU.
Manufacturers produced a total of 66,527 cars in April, up 10 percent from the same period last year, the SMMT said, with the number of electric vehicles rising 56 percent year over year.
Mike Hawes, chief executive of the SMMT, said: ‘These figures show how exports, particularly to Europe, remain the basis of UK car production, so we must do everything we can to ensure the competitiveness of these trade relationships. ‘