Marking Britain’s greatest move in the car gigafactory space, as it seeks to keep up with the United States and European Union in the race to develop green industries, the Tata Group announced that it will establish an EV battery plant in the United Kingdom.
The group said that it will invest more than 42,000 crore (£4 billion) in EV battery production and supply to Tata Motors and Jaguar Land Rover initially. It confirmed that battery supplies will commence from 2026.
The EV battery plant will have an initial output of 40GW to supply around half a million EVs annually, and create 4,000 jobs. The company’s growth plans for its flexible manufacturing capacity will begin with a rapid ramp-up phase and the start of production in 2026.
The Tata Group is yet to confirm the location of the plant in the UK, however, it is expected that the plant will be built in Somerset, south-west England, while Jaguar Land Rover’s UK factories are near Birmingham, in central England. This reflects the need for heavy batteries to be built near their car plants.
The brand is planning to maximize its renewable energy mix and targets 100 percent clean power. Moreover, the company said that it will employ battery recycling to recover and reuse all the original raw materials to deliver a circular economy ecosystem.
Morgan Stanley has an overweight rating on the shares of Tata Motors with a target price of 711.00. This translates to an upside of 14.36 percent as compared to its closing price of ₹ 621.70 on Thursday.
The global investment bank said that Tata’s in-house battery manufacturing supports a steady supply of battery cells and can help mitigate potential geopolitical risks and help its EV ramp up, however, it may carry technological risks.
Written by Simran Bafna
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