Tata Group To Set Up £4 Billion EV Battery Cell Gigafactory In U.K.
The gigafactory will deliver electric mobility and renewable energy storage solutions for the U.K. and Europe.
Tata Group announced its foray into EV battery manufacturing with a plan to set up a 40-gigawatt battery cell gigafactory in the U.K.
The investment of over £4 billion, or about Rs 42,480.9 crore, will deliver electric mobility and renewable energy storage solutions for customers in the U.K. and Europe, according to the company's press release.
The largest-ever gigafactory in Europe is expected to generate over 4,000 jobs, and it positions the country as the most attractive place to build electric vehicles, said U.K. Prime Minister Rishi Sunak in a statement.
Gigafactory is a generic term referring to facilities that produce batteries for electric vehicles on a large scale. Sunak said, "With the global transition to zero-emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology while creating as many as 4,000 jobs and thousands more in the supply chain.
Luxury carmaker Jaguar Land Rover and its parent Tata Motors will be the primary customers, with supplies commencing from 2026.
"With this strategic investment, the Tata Group further strengthens its commitment to the U.K., alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive," said N Chandrasekaran, Chairman at Tata Sons Pvt., in a statement.
Shares of Tata Motors rose 1.88% to Rs 623.6 apiece as of 12:02 p.m., compared to a 0.02% gain in the NSE Nifty 50. The scrip rose as much as 2.16%, the most in over a week since July 10. The stock has risen nearly 61% year-to-date.
The relative strength index was at 67.5.
Out of the 36 analysts tracking the company, 29 maintain a 'buy' rating, three recommend a 'hold', and four suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 1%
