Agratas lands £380 million in backing from the UK Government

The Department for Business and Trade has unveiled a £380 million grant to support the development of one of the largest gigafactories in the United Kingdom. The facility will be built by Agratas, a battery company owned by the Tata Group. The ambition is clear, even if the path is complex. By boosting domestic production of electric vehicle batteries, the UK hopes to reduce its dependence on imports while unlocking up to £43 billion in economic growth over the next quarter-century.

Set in Somerset, the Tata-backed gigafactory is expected to supply batteries to Jaguar Land Rover and other customers. The numbers are significant. Around 4,200 jobs are projected to be created directly, but that is only part of the picture. Thousands more roles could emerge across the broader supply chain, alongside 300 apprenticeships supported by a dedicated training unit that builds specialized skills from the ground up.

Agratas expects production to begin by late 2027 with a possible £4 billion investment. While the electric vehicle transition has progressed more slowly than anticipated, this gigafactory signals a renewed push to advance the UK’s battery production capacity.

This initiative follows earlier government backing for another UK-based gigafactory. Through its National Wealth Fund, £1 billion was committed to a separate facility led by AESC. That plant is expected to produce enough batteries each year to power 100,000 electric vehicles and create over 1,000 jobs.

Within the broader framework of its industrial ambitions, the Department for Business and Trade points to the success of its Modern Industrial Strategy, which has secured over £360 billion in investment across priority sectors since its launch last year. This effort is tied to supporting roughly 120,000 jobs. At the same time, the government is working to ease pressure on energy-intensive manufacturers by cutting electricity costs, speeding up planning processes, and trimming regulatory burdens.

Investment is also flowing into innovation and skills. Around £47 million is being directed into key research and development projects through the Battery Innovation Program, while a further £190 million is aimed at ensuring the automotive sector remains globally competitive. Beyond that, £16.44 million has been allocated to digital technologies, including artificial intelligence and robotics. Up to £99 million is set aside to help manufacturing SMEs adopt these technologies more quickly. Smaller but targeted funding includes £1.4 million for projects exploring autonomous freight and self-driving passenger systems, alongside £182 million for an engineering skills package intended to train the next generation of engineers and inventors.

Speaking on the manufacturing sector investments, Business Secretary Peter Kyle stated: “This Government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country – helping to boost economic growth and our resilience, secure jobs and put more money in people’s pockets.

“In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond. “That is what sets us apart from the rest, and will help ensure advanced manufacturing remains a thriving sector in the UK for decades to come.”