Indian conglomerate Tata Group has committed an investment of over £4bn to establish a battery cell gigafactory in the UK with a capacity of producing 40GW of cells per year.

The planned gigafactory will cater to the group’s customers in the UK and Europe by producing high-quality, high-performance, sustainable battery cells and packs for a range of applications within the electric mobility and energy sectors.

Besides, the battery cell gigafactory is expected to set up a competitive green tech ecosystem at scale in the UK, said Tata Group.

Supplies from the facility are targeted to begin in 2026. Jaguar Land Rover (JLR) and Tata Motors, which are affiliated with the Tata Group, will be the anchor customers.

Tata Sons chairman N Chandrasekaran said: “Our multi-billion pound investment will bring state-of-the-art technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, Jaguar Land Rover.

“With this strategic investment, the Tata group further strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive.”

The battery cell gigafactory aims to optimise its use of renewable energy sources, in order to achieve 100% clean power.

By implementing cutting-edge technologies and efficient processes such as battery recycling, the plant plans to recover and reuse all the initial raw materials, thereby creating a fully circular economy ecosystem for battery materials and critical raw minerals.

According to the UK government, the gigafactory will generate up to 4,000 new jobs while opening up thousands more roles in the larger supply chain.

The facility is also anticipated to meet nearly half of the battery production required by 2030 by the UK, as per an estimate by the Faraday Institution. This will help the country to turbocharge its transition to zero-emissions vehicles.

UK Prime Minister Rishi Sunak said: “We can be incredibly proud that Britain has been chosen as home to Tata Group’s first gigafactory outside India, securing our place as one of the most attractive places to build electric vehicles.”