Sources familiar with the matter have indicated that the constrictor would opt for Spain as the location for its factory if the government fails to provide the requested financial assistance.
The Financial Times reports that Tata Motors, the parent company of British automaker Jaguar Land Rover (JLR), is requesting £500 million (€566 million) in financial aid from the UK government to establish a battery factory in the country. If the request is not met, the company may consider building the factory in Spain instead.
The JLR has given UK ministers a few weeks to provide financial aid before deciding whether to build its battery factory in Spain or in South West England.
According to the business daily, Tata is considering a partnership with the Chinese battery company Envision in Somerset. Envision is already producing batteries for Nissan in the UK and is also involved in building a new “giga-factory” with Nissan in Sunderland, which is located south of Newcastle.
When contacted by AFP, the UK branch of Tata Motors declined to comment on “rumors or speculation”. The British government has not responded yet.
If Tata chooses to build the factory outside of the UK, it would be a setback for both the auto sector and the government, which was already reeling from the bankruptcy of Britishvolt, a company focused on building a large-scale battery factory for electric cars. The bankruptcy drew significant attention in the UK and brought criticism of the government, as it was seen as a setback to its goal of achieving carbon neutrality by 2050.
After filing for bankruptcy in January, Britishvolt, a company dedicated to building a large battery factory for electric cars, was eventually acquired by Australia’s Recharge for an undisclosed sum. The deal was finalized on Monday, but only about 20 employees were able to keep their jobs out of the approximately 300 people employed by Britishvolt prior to filing for bankruptcy.
Jaguar aims to become fully electric by 2025, however, it currently offers only one all-electric model, the I-Pace. The release of the brand’s next all-electric vehicle and Land Rover’s first all-electric model is expected in 2024.
The manufacturer has faced recent turbulence, including the resignation of its CEO Thierry Bolloré in mid-November for “personal reasons” and the global shortage of semiconductors, which has forced it to cut production in the United Kingdom.
