Somerset’s groundbreaking new ‘gigafactory’ has received a pivotal £380 million investment from central government, ensuring it remains a key employer and economic driver in the region for years ahead.
Agratas is currently developing the first phase of the gigafactory at the Gravity enterprise zone between Puriton and Woolavington, with operations expected to commence by late 2027.
This funding forms part of the UK government’s broader industrial strategy, with the Department for Business and Trade (DBT) announcing a £700 million investment into the country’s advanced manufacturing sector on April 9. The Somerset gigafactory stands out as the largest single recipient of these funds.
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Business Secretary Peter Kyle MP emphasized that this investment will make the facility economically impactful, commercially viable, and effective—securing local jobs while supporting Somerset’s transition away from fossil fuels.
During a tour of the site, Mr. Kyle highlighted the strategic importance of the project: “Tata, Agratas' parent company, is investing billions here, reinforcing a strategy that has unlocked over £300 billion in nationwide investment. We are using British steel and collaborating on automotive innovation through initiatives like Drive35, fortifying the future of battery production for UK-assembled vehicles.”
He added, “This one facility will generate more than £43 billion in economic activity over coming decades—a tremendous source of excitement for both me and the local community.”
Somerset Council initially pledged up to £150 million to fund targeted infrastructure improvements through borrowing repaid via business rates. However, following negotiations with Agratas and central government, this borrowing was removed from the council’s capital program in February, with alternative funding methods securing those infrastructure upgrades.
While it’s not yet clear if any of the £380 million will directly fund infrastructure, Mr. Kyle assured that the investment guarantees long-term employment for Somerset residents.
He acknowledged the challenges of competing globally in battery technology, particularly with China’s stronghold on innovation and pricing. “But with government and industry partners like Agratas and Jaguar Land Rover working together, this plant is becoming a cutting-edge and commercially viable hub for battery production.”
Mr. Kyle praised the cooperation between government, industry, and local authorities, emphasizing, “Without government backing, this facility simply would not exist.”
Once fully operational, the gigafactory is projected to create up to 4,200 jobs and unlock 300 local apprenticeship opportunities.
Mr. Kyle also underscored the facility’s adaptability amid rapidly evolving battery technologies: “Agratas is designing a manufacturing environment that can evolve alongside fast-changing technology, ensuring the UK stays at the technological forefront. This is ultra-cutting-edge manufacturing that will serve the UK for decades.”
Earl Wiggins, vice-president of UK manufacturing operations at Agratas, welcomed the support, stating: “The government’s investment is critical as we build a battery manufacturing facility that advances net zero goals and strengthens the UK’s global leadership in battery production. Over the next year, we expect over 2,200 workers on site, with continued growth in the years ahead.”