The United Kingdom government has awarded a £380 million ($482.6 million) grant to Agratas to support construction of a battery gigafactory in Somerset, part of a wider package of more than £700 million aimed at strengthening advanced manufacturing and electric vehicle supply chains.
The Somerset site, which will produce battery cells for anchor customer JLR, is expected to become one of Europe’s largest gigafactories and generate an estimated £43 billion in economic value over 25 years when fully operational, the government said.
The project is expected to support 4,200 direct jobs, thousands more across the supply chain, and 300 apprenticeships. More than 2,200 people are projected to be working at the site within the next year.
“This funding will support the development of our Somerset facility, enabling us to produce battery cells for our anchor customer, JLR,” said Earl Wiggins, vice president of manufacturing operations for Agratas in the UK. “Over the next year we will have over 2,200 people working on the site, and that growth will continue over the coming years.”
The grant forms part of a broader industrial support package that includes £190 million for the wider automotive sector and £47 million for battery research and development through the Battery Innovation Programme.
Of the automotive funding, £90 million will be distributed through the DRIVE35 initiative to companies including Nissan and JLR for prototype and advanced vehicle development projects, while £100 million will support suppliers in the North East and West Midlands as they transition toward electric vehicle manufacturing.
Business Secretary Peter Kyle said the funding reflects the government’s effort to support strategic industries and strengthen domestic manufacturing capacity.
“This government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country,” Kyle said. “In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need.”
