The United Kingdom (UK) is close to clinching a deal with the Tata Group, as the owner of Jaguar Land Rover (JLR) is leaning towards the country over Spain, according to a report by Bloomberg. The India-headquartered Tata Group is currently inclined towards establishing a battery factory in the UK after the government has offered the conglomerate a support package, the newswire reported, citing sources.

While no final call has been taken, it is a possibility that Tata could opt for another location, sources informed the newswire.  A decision in favor of the UK by Tata would secure the future of JLR’s plants in the country and mark a major coup for the government, as Spanish authorities were battling to win the investment, the newswire reported. 

The plant slated to come up in Somerset, UK, will produce batteries for Jaguar Land Rover's fully-electric models which are due the next year, Bloomberg reported.

The UK has been finding it difficult to garner investment in the auto sector after Brexit, as many manufacturers have opted for other countries, against the backdrop of an overall push for EVs, Bloomberg reported. Stellantis, which is redesigning the Ellesmere Port site for producing electric vans, warned that operations in the UK could shut down if manufacturing costs become unviable and uncompetitive, the report said.

Bloomberg was unable to elicit responses from Tata and the Department of Business and Trade who refrained from talking on the subject matter.