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Abandoning Spain, Tata to build electric car battery plant in U.K.

Update time : 2023-05-26 15:11:42

Jaguar Land Rover parent company Tata Motors is reportedly investing billions of pounds to build an electric vehicle battery plant in the United Kingdom. Tata had previously considered building a new plant in the U.K. or Spain, but eventually the company chose the U.K.
Tata's chief is expected to fly to London next week to finalize a deal to build the battery plant, which will likely be located in Somerset in southwest England and create 9,000 jobs, the report said, without citing sources.

The U.K. government's commercial department declined to comment on the report on May 24. Tata Motors and its parent company, the Tata Group, did not immediately respond to requests for comment.
If Tata decides to abandon Spain and build a plant in Britain, it would be a major victory for British Prime Minister Rishi Sunak, who is currently under intense pressure to boost Britain's attractiveness to automakers.
Jeremy Hunt, the finance minister, hinted last week that the U.K. would focus on developing battery manufacturing capacity for electric vehicles, and when asked about it at an event, he said the government would "focus on that area.
Such investment would also give a boost to the U.K. auto industry, days after major automakers including Vauxhall parent Stellantis and Ford warned that post-Brexit trade rules coming into effect could make it impossible for them to continue operating plants in the U.K.
The U.K. is already lagging behind other countries in the global race to build indigenous battery capacity, something that threatens the future of its electric vehicle industry, which needs to produce batteries near car manufacturing plants.
The lack of a homegrown battery production industry under post-Brexit rules that will come into effect next year will also put the U.K. at risk of European tariffs on cars made in the country.

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