Tata Sons, the principal investment holding company and promoter of the Tata Group of companies, has announced its plan to establish a global battery cell gigafactory in the United Kingdom with a capacity to produce 40 GW of cells annually.

The investment, exceeding £4 billion (~$4.4 billion), would help establish a large competitive green tech ecosystem, which is expected to revolutionize the electric mobility and renewable energy storage landscape in the UK and Europe.

The anchor customers for this venture will be Jaguar Land Rover (JLR) and Tata Motors, with supplies scheduled to commence in 2026.

The company said the move is aligned with the Tata Group’s commitment to promoting sustainable practices across all its businesses.

The battery gigafactory’s core objective is to produce high-quality, high-performance, and sustainable battery cells and packs, catering to a wide range of applications in both the mobility and energy storage sectors.

To achieve this, Tata Sons has outlined strategic growth plans for flexible manufacturing capacity, initiating a rapid ramp-up phase and setting the production in motion for 2026.

The gigafactory is expected to maximize its renewable energy mix, aiming for 100% clean power.

In pursuit of a truly circular economy ecosystem, the facility would employ innovative technologies and resource-efficient processes, including battery recycling, which will enable the recovery and reuse of all original raw materials.

N Chandrasekaran, Chairman of Tata Sons, said, “Our multi-billion-pound investment will bring state-of-the-art technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, Jaguar Land Rover.”

“With this strategic investment, the Tata Group further strengthens its commitment to the UK alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive,” Chandrasekaran said.

UK Prime Minister Rishi Sunak lauded Tata Group’s decision to establish their new gigafactory in the UK, marking the company’s first such venture outside of India.

Sunak said that the investment is not only a massive vote of confidence in Britain but also one of the largest ever seen in the UK automotive sector.

With EV sales on the rise in India, Tata Motors accounted for the highest sales of electric four-wheelers, with 10,846 units sold during the second quarter of 2023.