Somerset’s cutting-edge gigafactory project has received a crucial £380 million funding boost from the UK government, cementing its role as a major employer and economic driver for the region over the coming decades.
Agratas is currently building the first phase of this state-of-the-art battery manufacturing plant within the Gravity enterprise zone between Puriton and Woolavington. Operations are scheduled to begin by late 2027.
As part of the government’s broader industrial strategy, the Department for Business and Trade (DBT) revealed on April 9 that £700 million will be invested in advancing Britain’s manufacturing sector, with the Somerset gigafactory receiving the largest share.
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Business Secretary Peter Kyle MP highlighted that the investment will guarantee the factory’s economic impact, commercial viability, and long-term employment opportunities, while supporting Somerset’s green energy transition.
Kyle, representing the Hove and Portslade constituency, toured the gigafactory site and emphasized the significance of ongoing investments by Tata, Agratas’s parent company. He noted that British-made steel is being used, reflecting the government’s commitment to promoting domestic supply chains and preparing the automotive sector for the future with innovations like the Drive35 initiative.
“This single facility is projected to generate more than £43 billion in economic activity over the coming decades,” Kyle said. “That is a tremendous source of excitement for both me and the local community.”
Initially, Somerset Council pledged up to £150 million—funded by external borrowing repaid through retained business rates—to improve infrastructure supporting the site. After negotiations with Agratas and the government, the council removed this borrowing from its capital programme, with infrastructural enhancements now being funded through alternative channels.
While Kyle did not specify the allocation of the £380 million towards infrastructure, he assured that the funding would underpin sustainable employment for Somerset residents.
Highlighting the competitive global market, Kyle acknowledged China’s dominance in battery innovation and pricing but stressed that government partnership with Agratas and Jaguar Land Rover will enable the factory to remain commercially viable and technologically advanced.
“Through grant funding, streamlined planning, and strong local authority support, this facility can exceed global standards in quality, innovation, and cost competitiveness,” he said. “Without proactive government involvement, it simply wouldn’t be happening.”
Once fully operational, the gigafactory is expected to create up to 4,200 jobs and unlock 300 apprenticeships in Somerset.
Kyle emphasized the plant’s adaptability to fast-evolving battery technologies, ensuring Britain’s resilience amid global economic volatility. He explained how flexible machinery and advanced manufacturing techniques would keep the factory at the forefront of innovation well into the future.
Earl Wiggins, Agratas’ Vice President of UK manufacturing operations, welcomed the government’s investment, highlighting its significance in helping the UK lead globally in battery manufacturing and support net zero ambitions.
“Over the next year, we expect to employ more than 2,200 people on site, with continued growth in the years ahead,” Wiggins said, underlining the gigafactory’s vital role in supplying battery cells to Jaguar Land Rover and advancing sustainable transport.