The BBC reports Wednesday that Tata Motors Ltd (NS:TAMO), parent company to Jaguar Land Rover Automotive, is set to pick Britain for a multi-billion dollar electric vehicle battery plant. A plant some have described as the most significant investment in U.K. automotive since Nissan (OTC:NSANY) came to Britain in the 1980s.
A Tata chairman is expected to fly to London next week to meet the prime minister and finalize the deal to build the battery factory, which could employ 9,000 people in Somerset, southwest England.
According to the BBC report, citing sources familiar with the matter, although the deal has yet to be signed, engagement has moved from negotiations to drafting and choreography of how the landmark agreement will be presented.
A decision by Tata to choose Britain over Spain represents a significant victory for Prime Minister Rishi Sunak, who faces mounting pressure to enhance the country's appeal to automobile manufacturers.
Just recently, Finance Minister Jeremy Hunt alluded to a potential advancement in Britain's electric vehicle battery production capabilities, intriguingly stating "watch this space" when questioned about it during an event.
In recent days, Stellantis NV (NYSE:STLA), one of the largest global automakers that includes renowned brands like Vauxhall, Peugeot, Citroen, and Fiat, issued a cautionary statement. They indicated that unless the government reopens negotiations on the Brexit deal, they might be compelled to shut down their factories in the U.K. Stellantis had previously made a commitment to manufacture electric vehicles within the country, but it is now casting doubts on the viability of this decision.
Many industry insiders are hopeful that Tata's battery investment will encourage more battery investments in the U.K. Currently, the U.K. only has one plant in operation next to Nissan's Sunderland factory, and another one that is still in the early stages of planning in Northumberland. By contrast, the European Union already has 35 battery plants that are open, under construction, or in the works.