UK Grants £380 Million to Tata's Agratas for Somerset EV Battery Gigafactory

The United Kingdom's Advanced Propulsion Centre (APC) has officially announced a £380 million grant, approximately $510 million, to Agratas, the battery manufacturing arm of India's Tata Group. The funding forms a key component of a broader £470 million government grant package aimed at strengthening domestic electric vehicle supply chains.

The grant was facilitated through the Department for Business and Trade's DRIVE35 Automotive Transformation Fund. The British High Commission in India described the development as a strong example of UK-India partnerships shaping the future of clean mobility.

The gigafactory represents a £4 billion private investment and is expected to create around 4,000 jobs directly, with Phase 1 becoming operational by late 2027. The facility is projected to become one of the largest battery manufacturing plants in Europe.

The manufacturing facility will be developed at the Gravity Smart Campus near Bridgwater, Somerset, with Agratas serving as the first and primary occupier on the site. The plant is expected to have a capacity of 40 gigawatt-hours.

The Somerset gigafactory will initially supply Jaguar Land Rover, with the potential to support wider automotive manufacturers in the future. The UK government says the Agratas project will strengthen economic security and reduce the country's reliance on imports by significantly boosting domestic battery production.