Government gives £380m grant to Agratas gigafactory

The government is making a £380m grant towards building the £4bn Agratas car battery gigafactory in Bridgwater, Somerset, where Sir Robert McAlpine is construction manager.

CGI of the completed development Image: Agratas

Earl Wiggins, Vice President of Manufacturing Operations, UK for Agratas (part of the Tata Group) said:

“We welcome the UK government’s investment as we build a battery manufacturing facility that will play a vital role in delivering net zero and strengthening the UK’s position as a global leader in battery manufacturing.

Over the next year we will have over 2,200 people working on the site, and that growth will continue over the coming years.”

Earl Wiggins

The gigafactory will initially make batteries for the Range Rover, Land Rover Defender and Jaguar models, all of which are owned by Tata.

Government is injecting an additional £47 million worth of support for key R&D battery projects through the Battery Innovation Programme, helping to create skilled jobs, a stronger supply chain and position the UK as a globally competitive destination for battery manufacturing.

Agratas is almost finished with cladding the building with insulation, which will allow teams to fit internal equipment.

Julian Hetherington

Julian Hetherington, Automotive Transformation Director at the Advanced Propulsion Centre (APC), praised the extra funding for helping to develop the sector further.

He said: "This globally significant investment by Agratas reinforces the UK's accelerating position in pursuit of road transport decarbonisation through the production of vital high-performance batteries for electrified vehicles.

The Agratas gigafactory in Somerset is being built with 100% British sourced steel  Image: Agratas

"I'm delighted that the ATF has been able to support Agratas in their investment in new facilities, creating secure and highly skilled jobs in this area and across the supply chain."

The Agratas’ project will strengthen economic security and reduce Britain’s reliance on imports by turbocharging domestic battery production and generating around £43 billion worth of economic growth over a 25-year period when the facility is in full operation.

The site will not only support 4,200 direct jobs but thousands more in the supply chain, as well as unlock 300 apprenticeships - backed by a specialised battery manufacturing apprenticeship unit to meet the skills needs of Agratas’ gigafactory and the wider battery sector.

It recently confirmed that it was gearing up for an "imminent start" on the ring road near the gigafactory, with around 1,600 jobs set to be created as part of this process.

Earlier this year Costain secured a £123m contract to design and build a new motorway junction on the M5 to serve the battery plant.