JLR owner awarded £380m towards new zero emission vehicle technology
Source: The Business Desk Neil Hodgson
The owner of UK luxury car maker, Jaguar Land Rover (JLR), has received £380m from a UK government-backed project focused on the transition to zero-emission vehicles.
The Advanced Propulsion Centre UK (APC) has revealed the latest government-backed projects under the DRIVE35 programme.
It is a package of more than £470m in grants to support the UK automotive industry and includes substantial UK government support of around £380m for Agratas, part of the Tata Group, parent company of JLR.
Agratas combines pioneering research, world class engineering, and sustainable design to deliver high performance battery solutions.
It is currently building major battery gigafactories in Somerset, UK, and Sanand, India.
The £4bn Somerset plant, near Bridgewater, set for completion by late 2027 or early 2028, is expected to create up to 4,000 direct, high-skilled jobs, with thousands more in the supply chain.
The £380m investment is provided through the Department for Business and Trade’s DRIVE35 Automotive Transformation Fund (ATF), facilitated by the APC. It represents another vital milestone in the UK’s transition to zero-emission vehicles.
JLR, owned by Indian conglomerate Tata, employs around 34,000 staff in the UK and makes its vehicles at its Halewood site in Merseyside, and Castle Bromwich and Solihull plants in the West Midlands.
In September 2024 JLR invested £500m in its Halewood manufacturing site, which employs around 4,000 staff, to make it the ‘factory of the future’, supporting the parallel production of electric vehicles alongside existing combustion and hybrid models.
JLR’s Reimagine strategy will see the group electrify all its brands by 2030, with the aim of achieving carbon net zero across its supply chain, products, and operations by 2039.
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.”
He said the ATF support for Agratas will create secure and highly skilled jobs and across the supply chain.
Delivered by the Department for Business and Trade in partnership with the APC and Innovate UK, the DRIVE35 programme supports innovation, scale-up, and industrial transformation within the automotive sector.
Grant awards are paired with private industry investment and will accelerate the development of next generation zero emission vehicle technologies and supply chains across the UK.
Minister for Industry, Chris McDonald, said: “Our Modern Industrial Strategy is central to this government’s growth mission, and by funding our automotive sector, we are creating the right conditions for increased investment, economic growth, and jobs across the country.”
Other government grant awards unveiled today (April 9) span four DRIVE35 competition streams and together represent £90.5m in government funding. They are Collaborate, Demonstrate, Scale-up Fund, and Scale-up Feasibility Studies.
They aim to boost domestic manufacturing, grow industrial capability, and strengthen sovereign supply chains across the country.
Ian Constance, CEO, APC, said: “The projects announced today demonstrate the UK’s determination to lead the shift to zero emission mobility.
“By facilitating the UK Government’s DRIVE35 grants we are turning world class innovation into industrial capability. With our partners in DBT and Innovate UK, we are backing manufacturers, empowering SMEs, and strengthening the UK’s sovereign supply chain.”