Tata Motors, which owns British luxury car brand Jaguar Land Rover, has reportedly approached the British government for financial help to set up an electric vehicle battery manufacturing plant in the country.According to British media reports, the automaker is asking nearly $600 million (roughly converted to nearly ¥5,000 crore) to set up the factory that will supply key EV components to its luxury car division in the coming days. Reports also suggest that the Indian automaker has threatened to relocate factories abroad if the British government refuses to provide the required funding.
Tata Motors is reportedly planning to set up an EV battery manufacturing plant together with EV battery maker Envision from China. Last year, Jaguar Land Rover planned to cooperate with it to produce electric vehicle batteries. There should also be a facility in Somerset. However, the plan was delayed following the ouster of former prime minister Boris Johnson.
The funding Tata Motors is seeking from the UK government includes subsidies as well as energy and research costs. The carmaker has reportedly given the British government a week to make a decision before Tata Motors can approach Spain to build the upcoming plant. The British media “Daily Telegraph” quoted a British government official as saying, “We are engaging with them – whether progress in negotiations depends on whether a final amount can be agreed.”
Jaguar Land Rover had earlier received government funding, which was reportedly larger than that of other European rivals. The new funding the automaker is seeking is considered huge considering JLR’s shift from ICE to EV type is estimated to be no more than $1.2 billion. The high cost of energy needed to run electric vehicle manufacturing facilities remains one of the key issues for the UK government to decide.
Tata Motors had earlier hinted at setting up two electric vehicle battery manufacturing plants, including one in Europe. However, it remains unclear whether the European factory will be based in the UK.
First published date: March 10, 2023 at 12:12pm CST
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