Funding

UK Awards $510M To Tata’s Agratas For EV Battery Gigafactory

Apr 13, 2026 | By Kailee Rainse

The UK government has granted £380 million (around $510 million) to Agratas the battery division of Tata Group, to support the shift toward zero-emission vehicles.

SUMMARY

  • The UK government has granted £380 million (around $510 million) to Agratas the battery division of Tata Group, to support the shift toward zero-emission vehicles.

This funding is part of a broader £470 million package aimed at strengthening the country’s automotive industry backed by the Advanced Propulsion Centre.

Agratas is currently developing what could become the UK’s largest electric vehicle battery plant in Somerset with an expected capacity of 40 gigawatt-hours.

The project is expected to play a key role in boosting domestic EV production and supply chains.

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The funding, proposed by the Department for Business and Trade is being delivered through the DRIVE35 Automotive Transformation Fund further supporting the UK’s transition to clean and sustainable mobility.

“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,”

Julian Hetherington, Automotive Transformation Director at the APC, said. “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.” 

“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,” Minister for Industry Chris McDonald said.

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