Somerset’s groundbreaking gigafactory has received a pivotal £380 million boost from the UK government, ensuring it remains a cornerstone for local employment and economic growth for decades.
Agratas is leading the development of the gigafactory’s first phase within the Gravity enterprise zone, located between Puriton and Woolavington, with operations slated to begin by late 2027.
As part of the government’s broader industrial strategy, the Department for Business and Trade (DBT) unveiled on April 9 a £700 million investment to invigorate advanced manufacturing across Britain. Agratas’ Somerset gigafactory stands as the largest single recipient of this funding.
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Business Secretary Peter Kyle MP emphasized that this investment guarantees the facility’s economic impact, operational effectiveness, and commercial viability. He underscored the project’s role in securing local jobs and supporting Somerset’s green transition away from fossil fuels.
Speaking during a site tour, Kyle highlighted, “This is upfront investment into this facility. Tata, Agratas’ parent company, is committing billions into this site and our country as part of our industrial strategy, which has already unlocked over £300 billion in investment.”
He added, “The steel used here comes from within Britain, aligning with our industrial goals. We’re shaping the automotive future through Drive35, producing batteries destined for British-assembled cars. This one facility will generate more than £43 billion in economic activity over the coming decades—a tremendous boon for the local community.”
Somerset Council initially pledged up to £150 million, funded via borrowing repaid through business rates, to upgrade site infrastructure and reduce risks for private investors. However, following negotiations, the council withdrew this borrowing commitment in February, with infrastructure improvements now funded through alternative methods.
Kyle did not detail whether part of the £380 million government funding would directly finance specific infrastructure projects but affirmed its role in securing sustainable employment for Somerset residents.
Competing on innovation and price with batteries manufactured abroad, particularly in China, poses challenges. Kyle stated the government’s active partnership alongside Agratas, Jaguar Land Rover, and Somerset communities is critical to ensuring this facility remains commercially viable and at the forefront of research and development.
“Grant funding, streamlined planning, regulatory approvals, and strong local authority support have all combined to make this plant a reality,” he said. “Without a government committed to this vision, it wouldn’t have happened.”
Once fully operational, the Somerset gigafactory is expected to create up to 4,200 jobs and unlock 300 apprenticeship opportunities locally.
Kyle expressed confidence in the factory’s ability to keep pace with rapid advances in battery technology, reinforcing Britain’s resilience amid global economic volatility.
“The facility is designed to adapt to evolving battery tech, with flexible machinery capable of meeting future demands. This is a cutting-edge manufacturing hub set to maintain its lead for decades,” he said.
Earl Wiggins, Agratas’ Vice-President of UK manufacturing operations, welcomed the investment, highlighting its importance for achieving net zero goals and strengthening the UK’s global position in battery manufacturing.
“This funding will accelerate development at our Somerset site, enabling production for our anchor customer Jaguar Land Rover. We anticipate employing more than 2,200 people by next year, with continued growth ahead,” Wiggins noted.
This major government support marks a significant milestone for Somerset’s gigafactory, laying a solid foundation for economic success and technological innovation well into the future.