Jaguar Land Rover parent company Tata Group has announced that it will invest over £4 billion in a new UK gigafactory which will create thousands of jobs.

The new multi-billion-pound electric car battery factory is one of the largest ever investments in the UK automotive sector and will create up to 4,000 new direct jobs, and thousands more in the wider supply chain.

The factory, which will supply electric car batteries to JLR models from 2026, with the potential to supply other car manufacturers, is being built by the Indian multinational company in Bridgwater, Somerset.

It follows the collapse of plans to build a gigafactory in Blyth, Nothumberland, when Britishvolt entered administration amid accusations that the government had not shown sufficient patience as it scrambled to secure private sector investment.

Recharge Industries, which bought Britishvolt after it entered administration, says it remains committed to building that factory on the site of the former Blyth Power Station.

The government said the Somerset gigafactory will provide almost half of the battery production needed by 2030 – turbocharging the UK’s switch to zero emissions vehicles. It is Tata Group’s first gigafactory outside India.

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

“With the global transition to zero emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology whilst creating as many as 4,000 jobs, and thousands more in the supply chain.

“We can be incredibly proud that Britain has been chosen as home to Tata Group’s first gigafactory outside India, securing our place as one of the most attractive places to build electric vehicles.”

Mr N Chandrasekaran, chairman, Tata Sons, said: “The Tata Group is deeply committed to a sustainable future across our business.

“Our multi-billion-pound investment will bring state-of-the-art technology to the UK, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, JLR.

“With this strategic investment, the Tata Group further strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals and automotive.”

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