Battery test for UK government as Jaguar Land Rover asks for subsidies

TATA MOTORS, Jaguar Land Rover’s owner, has reportedly asked the UK government for subsidies of more than £500 million (€563.7 million) to build a battery factory.

This could be vital to the future of the British car industry, sources close to the company said.

In line with reports in the UK media, Mumbai-based Tata has requested the money in the shape of grants and support packages that would include help with energy costs and research.

The carmaker is said to be choosing between a potential site in Somerset and another in Spain, according to the Financial Times, which initially quoted the €563.7 million figure.

Spain is at present offering large grants to companies considering battery production, in hopes that it can attract the emerging battery industry with the country’s potential for cheap and abundant solar power.

The UK government’s answer to Tata is being regarded as a key test that will reveal exactly how much it wants to support a large car industry by assisting JLR.

An insider familiar with JLR strategy said a final decision was likely to arrive within the next two months.

“We could already be into extra time,” they warned. “If JLR, which is the UK’s biggest motor manufacturer, can’t make a business case to build electric batteries in this country, who else is going to build batteries in this country?”

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