Cautious optimism from battery industry on Tata's UK factory plans

The UK battery industry has reacted with cautious optimism to Tata Sons plans to build a 40GW battery cell gigafactory in Bridgwater.

Tata Sons announced it is to invest more than £4 billion, to deliver electric mobility and renewable energy storage solutions for customers in UK and Europe. 

It said Jaguar Land Rover and Tata Motors will be anchor customers, with supplies commencing from 2026.

It is set to produce 40GW of cells annually, as an integral part of the Tata group’s commitment to electric mobility and renewable energy storage solutions.

N Chandrasekaran, Chairman, Tata Sons, said the Tata group was "deeply committed" to a sustainable future across all its business and looked forward to bringing state-of-the-art technology to the UK, helping to power the automotive sector’s transition to electric mobility, anchored by its Jaguar Land Rover business. 

"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," he said.

"I also want to thank His Majesty's Government, which has worked so closely with us to enable this."

News of the UK battery cell gigaplant in Somerset has been welcomed by the UK battery ecosystem, however a number of senior players point out it cannot be the sum total of government collaborations.

Instead, it must be the start of a truly inclusive, joined up and collaborative industrial strategy delivering the jobs and industry of the future, they say.

Quentin Willson, founder of FairCharge, said: “While this is a very significant development for U.K. battery manufacturing, I truly hope that other companies in the battery, critical minerals, charging and EV supply chains won’t be neglected.

"The government should see this subsidy as the beginning of building a battery ecosystem in this country.

"There is a genuine fear in the industry that it could sweep up all available government support, which would be hugely detrimental to the future health of U.K. plc in the race to net zero."

He added the UK has some world class battery and EV talent and "we must support them as much as we can to prevent this valuable resource of innovators moving to other more receptive markets.” 

Dr Andy Palmer, founder and CEO, of Palmer Automotive and interim CEO Pod Point, said: “As a long-time advocate for government support of the nascent UK battery industry, I, like any sensible onlooker, welcome the news.

"However, I also air caution and so should the industry.

"Support must come in all shapes and sizes for businesses of all shapes and sizes.

"One gigafactory doesn’t equal success, it equals part of the puzzle." He called for a harmonious, collaborative, strategic industrial strategy that "lifts all boats" or warned the tide could "sweep the UK automotive sector into the deep abyss".

Dr Diana Mehta, chief scientist, at The Battery Recycling Company, said the announcement was "instrumental in ensuring the UK remains competitive in the battery race".

"Gigafactories, however, are only one element of a thriving battery industry," she added.

"Similar attention and support must be given to the rest of the battery supply chain, both upstream and downstream.

“The UK Government must adopt a holistic and sustainable critical mineral strategy to enable its net zero commitments.

"There is an opportunity to achieve this through eactivation of production scrap and end-of-life batteries within the UK's borders."

She added the Battery Recycling Company remains committed to providing recycled critical minerals to the battery industry, enabling a truly closed-loop system.

“We are a nation of industry innovators and thought leaders, and it is time to come together to put those thoughts into action,” she said.

Suzanna Hinson, battery workstreams lead at the Green Finance Institute, said: "While this investment is certainly an important foundation for building a thriving battery industry in the UK, further finance must be crowded in to enable the many innovative businesses that will support this ecosystem to scale.

“Public capital can catalyse private investment into the space and does not need to exclusively be given in the form of grants, as there is huge potential for blended finance in this sector.

"The Green Finance Institute is working to develop blended finance structures such as a Battery Investment Facility to target the gap many businesses in this sector face in accessing mainstream funding once they exit the grant landscape to build out their operations."

Jeremy Wrathall, founder and CEO of Cornish Lithium, said: “This is the first, hugely important, step towards a new industry for the UK, founded on our history of car manufacturing and related industries.

"Importantly this will incentivise other parts of the supply chain such as battery raw materials, including lithium.

"Government support remains essential as this demonstrates that the UK is determined to be a major player in electric vehicles and will not stand by while another of our vital industries walks out of the door and never comes back."

Charles Bray, executive chairman, Aterian - a London listed copper/lithium exploration company, said: “This development comes at a crucial time when there has been significant news and discussion surrounding the country's commitment to an automotive industrial strategy.

"We see this as a potential catalyst that could ignite the progress the nation needs.

"While positive, it is important not to let this single headline overshadow the wider UK energy transition ecosystem.

“What is truly required at this juncture is a cohesive and collaborative strategy that encompasses the entire UK battery sector."

He added Aterian remains steadfast in its commitment to bringing the critical minerals essential for a successful energy transition to the market.

"For the future to be genuinely sustainable, it is imperative that all stakeholders reap the benefits," Bray said.

"A shared vision and collective efforts are necessary to achieve long-term success with value added at the local level both in the UK and Africa.

"Aterian is fully dedicated to playing our part in driving positive change and fostering a future that is sustainable for everyone involved.”

Kirsty Benham, co-founder of the Critical Minerals Association, added: “Reports of JLR owner Tata choosing the UK for its battery plant is a huge step forward for the country.

"It will alleviate some concern that the UK is falling behind its European counterparts."

However, she added it was imperative to remember 80% of the value is in the supply chain.

"Without a secure, ESG compliant supply chain you don’t have a gigafactory, you have an empty factory," she said.

"This has to be one of a series of supportive measures by the government to ensure collective, joined up, UK battery industry success."

Mark Thompson, managing director of battery specialist AceOn, said: “This is a significant and important step forward in establishing the infrastructure this country will need to lead the world in the development of a sustainable future. 

"This is good for Tata/JLR, for the wider supply chain and for innovation in the industry.

"AceOn are working with JLR on developing second life applications from EV batteries – such as in our portable energy systems – and this will only help 

further innovation before full recycling.

"Our ambition must be to make our batteries in the UK, repurpose them in the UK and recycle them in the UK as part of a true renewables’ revolution.”