Jaguar Land Rover (JLR) is facing potential battery supply delays after construction issues hit a £5.2 billion government-backed factory in Somerset. The Birmingham and Coventry-based car manufacturer plans to use the Agratas factory in Bridgwater, Somerset, to supply batteries for its new electric models.
Construction Contractor Change
Agratas has terminated its main construction contractor, Sir Robert McAlpine (SRM), and replaced it with Tonroe Group Ltd (TSL), putting the planned 2027 start date at risk. The 2027 date had already been pushed back from an initial target of 2026, and there are now fears the gigafactory will not begin operations until 2028.
Job Creation and Budget Overruns
Agratas, owned by JLR's parent company Tata, said 1,500 operational jobs would be created in 2027, with 4,000 jobs available once the factory expands across the entire 616-acre site, formerly a royal ordnance factory. However, the long-running problems stem from budget costs that have ballooned, with the factory reportedly coming in half a billion pounds over budget.
JLR Chief Executive Comments
JLR Chief Executive PB Balaji said in November: "We are running against the clock on this one. It is stressed, but we’ll do our best to reach there."
Agratas Statement
A spokesperson for Agratas said it had "determined that a different construction delivery model is needed to support the next phase of our development." They added: "Following a review of the project’s requirements, we have decided to transition to a new construction partner. We thank our existing construction partner for their support to date. This change reflects the evolving needs of the project, positioning us to deliver the next phase with the capability and focus required to meet our objectives safely, efficiently and on schedule."
SRM Response
A spokesperson for SRM said: "Having successfully completed the first phase of Agratas’s battery manufacturing facility in Somerset, following extensive discussions, we have mutually agreed to part ways. We are now working closely with Agratas to support a smooth and orderly transition to a new construction partner."
