Somerset ‘gigafactory’ secures vital £380m boost
Agratas is currently constructing the first phase of the gigafactory at the Gravity enterprise zone between Puriton and Woolavington, which will enter operation by late-2027
Somerset’s new ‘gigafactory’ has secured a vital £380m investment from central government to ensure it can remain a key local employer “for decades to come”.
Agratas is currently constructing the first phase of the gigafactory at the Gravity enterprise zone between Puriton and Woolavington, which will enter operation by late-2027.
As part of the government’s industrial strategy, the Department for Business and Trade (DBT) announced on Thursday (April 9) that it would be providing £700m of investment into Britain’s advanced manufacturing sector – with the gigafactory being the largest single beneficiary.
Business secretary Peter Kyle MP said that the funding would ensure that the facility would be “economically impactful, effective and commercially viable”, securing local jobs and aiding the county’s transition away from fossil fuels.
Mr Kyle (who represents the Hove and Portslade constituency in East Sussex) spoke to the Local Democracy Reporting Service during a tour of the gigafactory site on Thursday (April 9).
He said: “This is all upfront investment into this facility.
“Tata Agratas’ parent company is investing billions into this facility and into our country right now as part of our industrial strategy – a strategy which has unlocked more than £300bn worth of investment into our country.
“We’re seeing steel in this facility coming from within Britain – another part of our industrial strategy – and we are helping to shape the automotive sector via Drive35, getting it fit for the future, producing the batteries that are going to go into British-assembled cars.
“This one facility will be generating over £43bn worth of economic activity over the decades to come. That is a real source of excitement for me, and I know for the local community here.”
Somerset Council had originally committed up to £150m (funded by external borrowing and repaid through retention of business rates) to deliver targeted infrastructure improvements at the site, reducing the risk to the site’s private sector backers.
The council withdrew this borrowing from its capital programme in February following further negotiations with Agratas and central government – with the improvements being delivered through different funding methods.
Mr Kyle did not specify whether any of the £380m would be directed towards specific infrastructure projects, but promised that it would ensure the facility would provide long-term employment to Somerset residents.
He said: “It’s about doing things in an economically impactful, effective and commercially viable way.
“When it comes to batteries for cars, China has stolen a march – it’s very hard to compete with them on innovation and pricing.
“But by this government being an active partner, alongside Agratas, Jaguar Land Rover and the people of Somerset, we can make this site commercially viable, but also cutting-edge in terms of the research and development – and that has made this plant possible.
“By stepping in with grant funding, helping with planning permission and regulatory approval, and having a local authority which has been really on the side of making this happen – all of us working together means that we can do things which exceed the standards, quality, innovation and pricing that you get from anywhere in the world, including China.
“Without a government that’s on the side of this, it wouldn’t have happened.”
The gigafactory is expected to create up to 4,200 jobs once all phases are fully operational, as well as unlocking 300 local apprenticeships.
Mr Kyle was adamant that the gigafactory could keep pace with the rapid changes in battery technology and make Britain more resilient amid an increasing volatile global economic picture.
He said: “I’ve been talking with the management of Agratas this morning, and one of the things that we’re talking about is how they are creating a facility which will be producing batteries, not just today, but into the future, in an area of technology which is fast-evolving.
“They explained to me how adaptive this space will be, and how the machinery that’s going in will be able to adapt as the battery technology adapts and evolves into the future.
“This is a manufacturing hub of ultra-cutting-edge technology, and they are determined to stay at the cutting edge.
“These are things that we’ve considered as a government supporting Tata in its investment here, and the people who are committing their time to come and work, and their professional expertise, can rest assured that they will be doing so for decades to come.”
Earl Wiggins, Agratas’ vice-president of UK manufacturing operations, added: “We welcome the government’s investment as we build a battery manufacturing facility that will play a vital role in delivering net zero and strengthening the UK’s position as a global leader in battery manufacturing.
“This funding will support the development of our Somerset facility, enabling us to produce battery cells for our anchor customer, Jaguar Land Rover.
“Over the next year, we will have over 2,200 people working on the site, and that growth will continue over the coming years.”