UK awards $510M to Tata’s Agratas for EV battery gigafactory

Britain has awarded £380 million (about USD $510 million) in funding to Agratas, the battery arm of India’s Tata ​Group. The funding aims to support the transition to zero-emission vehicles, and is part of a package of over £470 million (about USD 630 million) to support the UK automotive industry, the government-backed Advanced Propulsion Centre (APC) said.  

The grant to Agratas was proposed last year by the Department for Business and Trade. Agratas is building what may be Britain’s largest electric vehicle battery plant in Somerset, with an expected 40 gigawatt-hours capacity, according to Reuters.

This investment is provided through the Department for Business and Trade’s DRIVE35 Automotive Transformation Fund (ATF), facilitated by the APC, according to a press release.  

“This globally significant investment by Agratas reinforces the UK’s accelerating position in pursuit of road transport decarbonisation through the production of vital high-performance batteries for electrified vehicles,” Julian Hetherington, Automotive Transformation Director at the APC, said. “I’m delighted that the ATF has been able to support Agratas in their investment in new facilities, creating secure and highly skilled jobs in this area and across the supply chain.”  

“Our Modern Industrial Strategy is central to this government’s growth mission, and by funding our automotive sector, we are creating the right conditions for increased investment, economic growth, and jobs across the country,” Minister for Industry Chris McDonald said.

“The projects announced today demonstrate the UK’s determination to lead the shift to zero-emission mobility. By facilitating the UK Government’s DRIVE35 grants, we are turning world-class innovation into industrial capability,” Ian Constance, CEO, APC, said. “With our partners in DBT and Innovate UK, we are backing manufacturers, empowering SMEs, and strengthening the UK’s sovereign supply chain.”