UK: Tata seeks £500 million aid for JLR battery plant

If the funds aren't received, Tata could move its battery plant to Spain.

Tata Motors is planning to build a battery plant in the UK to power Jaguar Land Rover's future electric vehicles.

The Indian carmaker, which owns JLR, is said to be planning to partner with Envision - a Chinese battery maker, which could result in setting up and operating a factory in Somerset, UK. For this, Tata is seeking more than £500 million in aid from the UK government via grants, support packages, assistance for energy costs and research funding. The company has given UK ministers a few weeks to pledge the required financial support. If the funds aren't received, Tata could move its battery plant to Spain.

Reports state that the UK government has offered JLR a funding package larger than most of its rivals in the European Union. However, the higher energy costs are said to be the key issue, which is yet to be resolved.

The JLR & Envision were supposed to announce the partnership last year. But the plans got delayed because of the UK Prime Minister being replaced. Another reason was that Tata had also been seeking aid from the government for its UK Steel Business, for which it received £300 million.

Source: Telegraph