In order to supply its Jaguar Land Rover factories, Tata Group will construct an electric vehicle (EV) battery plant in the United Kingdom. This would provide the automotive sector a tremendous boost and assist to safeguard its future.

According to the plan, which was unveiled by the British government and Tata on Wednesday, the corporation will invest 4 billion pounds ($5.2 billion) in building its first gigafactory outside of India in Britain, resulting in the creation of up to 4,000 jobs and an initial output of 40 gigawatt hours (GWh).

The government of UK Prime Minister Rishi Sunak has refrained from disclosing how much financial assistance it pledged to attract the investment and defeat Spain, who had also fought to win the project.

According to the sources, Tata would receive government subsidies totalling hundreds of millions of pounds.

With more than 30 planned or under construction gigafactories for EV batteries around the European Union, Britain has lagged its European competitors in this area. There is now one tiny Nissan plant in Britain, and another is being planned.

“Tata Group’s multibillion-pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and its skilled workers,” Sunak said in the statement.

While Jaguar Land Rover’s UK plants are located close to Birmingham in central England, the new factory is anticipated to be constructed in Somerset in southwest England.

According to the government, production at the facility, which will supply JLR’s upcoming battery-powered vehicles under the Range Rover, Defender, Discovery, and Jaguar brands, is scheduled to begin in 2026.

For automakers who depend on hefty batteries being constructed close to their car facilities, domestic production is essential.