JLR owner Tata leans toward U.K. over Spain for battery plant, report says

Britain is close to winning a major battery plant for electric vehicles as Tata Group, the parent company of Jaguar Land Rover, leans toward choosing it over Spain.

Tata, a conglomerate involved in industries from cars to salt, is currently favoring a factory in England after the U.K. government offered a support package, according to people familiar with the matter.

No final decision has been made, and Tata could still decide on another location, the people said.

A decision in favor of the U.K. by Tata would secure the future of JLR’s plants in the country and mark a major coup for the government, as Spanish authorities were battling to win the investment.

The plant -- to be based in Somerset, England -- would make batteries for Jaguar Land Rover’s planned range of full-electric models that are due from 2024.

The UK has been struggling to attract significant auto industry investment in the aftermath of Brexit, while several manufacturers have shifted output to other countries amid the push toward electrification.

Stellantis, which is adapting its Ellesmere Port site to make electric vans, said operations in the U.K. could close if the cost of manufacturing became uncompetitive and unsustainable.

BMW last year said it will move production of electric Mini hatchbacks from Oxford to China. Honda closed its car factory in Swindon in 2021, leaving Britain with just four major manufacturers: Jaguar Land Rover, Nissan, BMW and Toyota.

A spokesperson for Tata declined to comment. A spokesperson for the Department for Business and Trade declined to comment.