Covid and Brexit made 2022 the worst year for car production since 1956. In the year to May output from British factories—810,000 vehicles—was roughly half that achieved five years ago. Any hope of a revival relies on British-based firms remaining in the driving seat as the industry switches from internal combustion to electric power. That means attracting more battery-makers.
Tata chose the West Country for several reasons. One is that Tata is keen to break the battery stranglehold of firms from other parts of Asia, especially Chinese ones.
Perhaps the greatest draw for Tata is that the government has belatedly concluded it must pay—and heavily—if mass-manufacturing of cars is to have a future in Britain. No details have been confirmed but it is rumoured that Tata asked for £500m towards an investment of over £4bn for a factory that should provide 4,000 jobs when it opens in 2026.
The government was desperate for a deal. It had stood on the sidelines as vast subsidies from America’s Inflation Reduction Act drew battery investment across the Atlantic, and as European handouts spurred the building or planning of up to 40 battery plants across the continent. The bankruptcy in January of BritishVolt, another battery-maker, was a blow that left Nissan’s plant in Sunderland, due to open in 2025, as the only other gigafactory in Britain.
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