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May 24, 2023 10:27 AM

JLR owner Tata to pick U.K. over Spain for European battery plant, BBC says

The decision would give a boost to the British car industry after major automakers including Stellantis and Ford warned that looming post-Brexit trade rules risked making it unviable.

Reuters
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    Jaguar Land Rover production Solihull

    Production at Jaguar Land Rover's factory in Solihull, England.

    LONDON -- Britain is set to host a multi-billion-pound electric car battery plant from Tata Motors, the BBC reported on Wednesday without citing sources, saying the Indian company had chosen the U.K. instead of Spain.

    The boss of Jaguar Land Rover-owner Tata is expected to fly to London next week to finalize the deal, the BBC report added.

    The British government's business department declined to comment on the report. Tata Motors and its parent Tata Sons did not respond immediately to requests for comment.

    The decision by the Indian blue chip company would give a boost to the British car industry coming days after major automakers including Vauxhall owner Stellantis and Ford warned that looming post-Brexit trade rules risked making it unviable.

    Spain is also competing to host the plant, making any decision to choose Britain a major win for Prime Minister Rishi Sunak who is under growing pressure from carmakers to make the country more attractive.

    Britain has fallen behind in the global race to build local electric vehicle battery capacity, threatening the future of the sector because it requires heavy batteries to be built near car manufacturing plants.

    A lack of a home-grown battery sector would also risk tariffs on British cars under post-Brexit rules that are due to come into force from next year.

    Up to 9,000 jobs would be created at the proposed site for the plant in Bridgwater, Somerset, southwest England, the BBC said.

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