UK's largest gigafactory to receive £380million funding boost to build electric car batteries

Felix Reeves
Thu, 09 Apr 2026 17:00:03 +0000

The UK's largest gigafactory has been boosted by £380million in funding in a huge Government boost for the automotive industry.

The Advanced Propulsion Centre UK (APC) has confirmed the latest Government funding boost worth a total of £470million to various projects under the DRIVE35 programme.

Agratas, which is part of the Tata Group, the parent company of Jaguar Land Rover, will receive "substantial" Government support of around £380million.

The company is currently developing its Bridgwater site in Somerset as it plans to begin battery production next year.

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Funding comes from the Department for Business and Trade's DRIVE35 Automotive Transformation Fund (ATF), facilitated by the APC.

Experts have previously called on the Government to boost the sector with additional funding and promote the production of electric vehicle batteries.

Julian Hetherington, Automotive Transformation Director at the APC, praised the additional 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.

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

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

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.

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This will require the team to construct roundabouts, culverts, drainage systems, street furniture, signage, lighting and landscaping.

Tom Flack, CEO of Agratas, said the company's initial £4billion investment in the Bridgwater site would "help supercharge Britain's transition to electric mobility".

"We care deeply about the communities we operate in, so it's imperative to us that we work with, and listen to, our new neighbours as we build our factory in Somerset," Mr Flack added.

A further £84million in Government funding will be invested in conjunction with vehicle manufacturers JLR, ELM Mobility, Maeving, and Nissan.