Major Government Investment for UK Gigafactory to Support Electric Vehicle Production
A significant £380 million government grant has been awarded to support the construction of one of Europe's largest gigafactories, which will produce batteries for Jaguar Land Rover (JLR) to manufacture zero-emission vehicles. This announcement was made by Business Secretary Peter Kyle during a visit to the Agratas site in Somerset on Thursday, April 9, 2026.
Boosting Economic Security and Job Creation
The project aims to enhance the UK's economic security by reducing reliance on imports and accelerating domestic battery production. Over a 25-year period when the facility is fully operational, it is projected to generate approximately £43 billion in economic growth. The gigafactory will directly support 4,200 jobs and create thousands more in the supply chain, along with unlocking 300 apprenticeships.
Earl Wiggins, Vice President of Manufacturing Operations UK for Agratas, stated: "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. This funding will support the development of our Somerset facility, enabling us to produce battery cells for our anchor customer, JLR. Over the next year, we will have over 2,200 people working on the site, and that growth will continue over the coming years."
Industry Support and Government Strategy
Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), commented on the funding: "Recent global events have highlighted the need for resilient supply chains, making this new investment in the sector both timely and important. The UK has a highly skilled and innovative automotive industry, but long-term competitiveness depends on a policy framework that encourages investment." He added that the grant demonstrates strong government backing for a vital industry.
Business Secretary Peter Kyle emphasized: "This government is backing the industries of the future by investing in auto firms, SMEs, and battery manufacturers across the country—helping to boost economic growth and our resilience, secure jobs, and put more money in people's pockets. In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond."
Additional Initiatives and Broader Impact
Since the launch of the government's Modern Industrial Strategy, over £360 billion in private investment has been secured across key sectors, supporting up to 120,000 jobs. The government is also implementing measures to cut electricity costs for energy-intensive manufacturers, reduce planning delays, and overhaul restrictive regulations.
Further support includes:
- A £47 million injection through the Battery Innovation Programme for R&D projects to create skilled jobs and strengthen the supply chain.
- A £190 million boost to ensure the automotive industry remains competitive globally.
- £90 million in DRIVE35 funding awarded to companies like Jaguar Land Rover and Nissan for innovative prototype projects to improve EV affordability.
- £100 million in DRIVE35 grant funding available for suppliers in the West Midlands and North East to transition towards EV manufacturing.
This comprehensive approach underscores the UK's commitment to becoming a leader in sustainable automotive technology and economic resilience.
