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APC

UK Government announces £380 million investment in Somerset gigafactory

9 Apr 2026
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The Advanced Propulsion Centre UK (APC) welcomes the UK government’s announcement today, 09 April 2026, of substantial backing for Agratas, part of the Tata Group, and parent company of JLR. Agratas combine pioneering research, world-class engineering, and sustainable design to deliver high-performance battery solutions.
 

This initiative aims to build substantial manufacturing capacity for advanced batteries at Bridgewater in Somerset, reaffirming the UK’s commitment to leading the charge in zero-emission vehicle manufacturing. 

This investment is facilitated through the Department for Business and Trade’s DRIVE35 Automotive Transformation Fund (ATF), which is delivered by the APC, and represents a further critical step in the UK’s transition to zero-emission vehicles and towards a net-zero automotive supply chain.     

The strategic investment will initially support automotive customers’ needs, helping accelerate the transition to decarbonised road transport. The investment by Agratas will ensure skilled jobs in the region, supporting over 4,200 direct jobs over the long term. This aligns with the Government’s stated desire to protect the UK’s national automotive sector and to put the country at the very centre of the global automotive decarbonisation map. 

Julian Hetherington, Automotive Transformation Director at the APC, said: 

“This globally significant investment by Agratas reinforces the UK’s accelerating position in pursuit of road transport decarbonisation through the production of vital high-performance batteries for electrified vehicles.”  

“I’m delighted that the ATF has been able to support Agratas in their investment in new facilities, creating secure and highly skilled jobs in this area and across the supply chain.” 

“The UK offers a competitive environment for battery-making; access to skills and high-quality R&D capabilities supported by our top-tier universities and open-access development facilities create the right environment for tomorrow’s workforce development and will ensure robust launch of these complex facilities.” 

“The UK’s Modern Industrial Strategy provides a focus for advanced manufacturing plants such as Agratas’ with special provisions for access to competitive green electricity supply and support for infrastructure delivery.” 

“Agratas have seen this opportunity, and I am delighted they have chosen the UK to grow this capability.” 

There is an urgent need for gigafactories in the UK. Our forecasts show that demand by 2035 will be at least 75Gwh and we will not meet 2050 emissions targets if we do not decarbonise transport. The technology roadmaps, published at the end of 2024 on behalf of the UK Automotive Council, show that battery electric vehicles (BEV) will make up a significant proportion of net-zero automotive solutions worldwide, and battery factories need to be positioned close to low-carbon energy and vehicle manufacture to be viable.” 

The ATF capital programme has attracted significant investments from major companies, such as Ford, Johnson Matthey, Nissan, and Tata, as part of our developing electric vehicle supply chain. 

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