Tata considering partnership for UK battery plant for supply JLR EVs: Report
Collaborations for the battery plant could vary from a joint venure to a licensing agreements, to knowledge sharing.
Tata Sons is in discussions with various startups as it seeks technical know how for its 4 billion pound UK battery plant, Bloomberg reported. Tata Motors' Group CFO PB Balaji told the newswire that they were talking to a host of startups in this space.
He further stated that the collaborations for the battery plant, slated to begin mass production in 2026, could vary from a joint venure to a licensing agreements, to knowledge sharing.
Jaguar Land Rover Automotive Plc. and Tata Motors, which is a leader in India’s EV market, are anchor customers for the plant that will provide 40 gigawatt hours worth of batteries with supplies starting from 2026. JLR plans to invest 15 billion pounds over the next five years in developing electric cars and autonomous-driving features, Bloomberg noted.
Tata aims to fund the project via an amalgamation of debt and equity, Balaji said, stating that they will also look at equipment financing. Tata will borrow whatever is required to keep the business plan running without over-leveraging the balance sheet, he told the newswire.
Tata’s main demand from the UK was securing competitive cost and availability of green power on a continuous basis and negotiating that took time, Balaji said. The UK government adjusted taxes, including grid and connection charges, to make the power competitively priced.
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21 Aug 2023
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Hormazd Sorabjee
