Jaguar Land Rover-owner to build UK battery factory in Somerset

Jaguar Land Rover-owner Tata will announce plans to build its flagship electric car battery factory in the UK.

People familiar with the matter said the new plant in Somerset would be officially announced on Wednesday.

The government is providing subsidies worth hundreds of millions of pounds, sources said.

Some in the car industry have described the plant as the most important investment in UK automotive since Nissan came to Britain in the 1980s.

The investment could lead to the creation of up to 9,000 jobs in the Bridgwater area. But its significance lies in the boost it will give to the sector as it transitions from petrol and diesel to making electric vehicles.

The government has been criticised for lacking a clear industrial strategy and falling behind the US and EU in attracting investment in low-carbon technologies.

Some industry insiders hope that the Tata battery investment will open the door to further battery investments in the UK.

The UK currently only has one plant in operation next to Nissan's Sunderland factory, and one barely on the drawing board in Northumberland.

Another proposed battery manufacturer, in the north east of England, Britishvolt, went into administration earlier this year.

By contrast the EU has 35 plants open, under construction or planned.