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Tata is preparing to announce the selection of a U.K. location for the Jaguar and Land Rover battery plant.

Tata Motors set to accounce plans to build UK battery factory
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Reuters was informed that Tata Group is expected to announce its battery plant decision on Wednesday. Reports from the BBC and Bloomberg also confirm that Tata has chosen a site in Somerset, to manufacture batteries.

Speculation regarding the location of Tata’s battery plant has been circulating for several months. That enable the production of approximately half a million vehicles annually, contingent upon the battery sizes.

Agratas, Tata’s battery-cell operation, is currently constructing two factories—one in India and one in Europe. The company recently posted job openings for factory positions based in the U.K.

The establishment would be a significant achievement for Britain as it strives to catch up in the global vehicle battery competition. This capability is crucial for automakers who rely on close proximity between battery production due to the heavy nature of the batteries.

The country’s finance minister, Jeremy Hunt, has stated that the government does not have extensive funds available for similar measures.

Having domestic battery production will also aid British automakers in complying with post-Brexit trade regulations. These regulations will necessitate sourcing a greater portion of electric vehicle components in 2024. The government has previously mentioned discussions with the EU to potentially ease these rules.

Government battery subsidies:

The BBC reports that the British government is expected to provide Tata with subsidies totaling hundreds of millions of pounds to bolster the plant project.

Darren Jones, expressed his approval of JLR’s decision to invest in battery production in the U.K. But also indicated the need for reflection regarding the subsidy package required to secure this decision.

Tata’s selection of Britain as the location for the plant will serve as a boost for Prime Minister Rishi Sunak’s government, which has made commitments to foster economic growth and has outlined various net-zero objectives, including a ban on the sale of new gasoline and diesel cars from 2030.

Salamanca Group, an investment and advisory firm with expertise in real estate, owns the proposed site for the plant. The group did not provide any comments on the matter.

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