Commons Sense

House of Commons · Ministerial Statement

Tata Group Gigafactory Investment

20 July 2023 · 17 other contributors

Opened by Nusrat Ghani Con Sussex Weald

EmploymentEnergyBusiness & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Nusrat Ghani raised concerns about tata group gigafactory investment in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Tata Group will invest over 4 billion to build the largest gigafactory in Europe.
  • The factory will create up to 4,000 jobs and supply Jaguar Land Rover with battery cells from 2026.
  • The gigafactory will help meet half of the UK's required battery production by 2030.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Nusrat Ghani

The minister announced that Tata Group will invest over £4 billion to build the largest gigafactory in Europe, which is a significant milestone for the UK's automotive sector. The factory will create up to 4,000 jobs and supply Jaguar Land Rover with battery cells starting from 2026. It will also help meet half of the UK’s required battery production by 2030. This investment builds on other initiatives such as Nissan and Envision's plans for an EV manufacturing hub in Sunderland, Ford's commitment to make Halewood the first EV components site in Europe, and Stellantis' transition of Ellesmere Port to electric van manufacturing.

Other contributors (17)
  • Dominic Raab Con Henley

    Question

    I warmly welcome the Government's announcement and Tata's decision, which highlights the tech potential of the UK. Does the Minister agree that our longer-term strategy is to not engage in a bidding war on subsidies with other countries and focus on shoring up supply chains for EV batteries?

    Minister reply

    The minister agreed with the shadow’s points about focusing on the ecosystem rather than bidding wars, highlighting initiatives like the Faraday battery challenge, the Advanced Propulsion Centre, and support for critical minerals such as lithium in Cornwall.

  • Dominic Raab Con Henley

    Question

    I warmly welcome the Government's decision and the announcement by Tata, which highlights the UK’s tech potential—

    Minister reply

    The minister responded that Tata’s investment is substantial at 40% of required gigawatts for battery production in the UK. She emphasised the importance of protecting the automotive sector from political interference, praising the government's strategy and initiatives such as the automotive transformation fund.

  • Stewart Hosie SNP Dundee East

    Question

    Welcoming the investment in battery manufacturing capacity, Stewart Hosie raises concerns about whether there is a right balance between investments in EV charging networks and battery production. He mentions Dundee's recognition as 'most EV visionary city in Europe' by World Electric Vehicle Association.

    Minister reply

    Ghani acknowledges the positive reception to the £4 billion investment in battery manufacturing and assures that substantial targets for charging infrastructure are being met, with continued focus on rolling out infrastructure as fast as possible.

  • Andrew Selous Con Carshalton and Wallington

    Question

    Expressing delight at the announcement, Andrew Selous inquires about completing the picture to ensure UK-made batteries for every car plant in the UK.

    Minister reply

    Ghani confirms that securing further investment is a priority, highlighting the significance of producing batteries not just for JLR but for the whole market. She expresses confidence in the UK's ability to attract such investments.

  • Barry Sheerman Lab Huddersfield

    Question

    Welcoming the announcement with a note of caution, Barry Sheerman reminds the Minister about Huddersfield's engineering skills and advises her on considering hydrogen technology which might emerge unexpectedly as a dominant mode of transport.

    Minister reply

    Ghani acknowledges Huddersfield's capabilities and confirms that hydrogen is indeed in their sights, citing recent developments in hydrogen-powered vehicles and infrastructure projects.

  • Fiona Bruce Con Congleton

    Question

    Welcoming the investment as a sign of commitment to green technology and automotive industry, Fiona Bruce highlights Brit European in her constituency.

    Minister reply

    Ghani expresses interest in meeting with Brit European and emphasises the Government's focus on battery recycling and staying at the forefront of new technologies.

  • Daisy Cooper Lib Dem St Albans

    Question

    Criticising the current situation where EVs remain expensive and charging infrastructure is unreliable, Daisy Cooper urges for consistent strategy and incentives to encourage adoption of electric vehicles.

    Minister reply

    Ghani highlights her constituency's ambitious charging point infrastructure roll-out plan and emphasises that prices will decrease as more EVs come on market. She expresses concern about additional costs to taxpayers.

  • Louie French Con Old Bexley and Sidcup

    Question

    Celebrating the announcement for creating skilled jobs and investment in a lower carbon future, Louie French contrasts this with Labour's perceived inaction.

    Minister reply

    Ghani dismisses Labour’s policies as inconsistent and emphasises Conservative government's commitment to inward investment in automotive sector.

  • Gavin Newlands SNP Paisley and Renfrewshire North

    Question

    Welcoming the announcement but criticising lack of industrial strategy, Gavin Newlands argues that sales are plateauing due to insufficient incentives.

    Minister reply

    Ghani counters by highlighting increased car sales, manufacturing and exports. She emphasises the importance of supply chain investments in creating a competitive automotive sector.

  • Paul Howell Con Darlington

    Question

    Welcomes the statement but raises concerns about existing motor supply chains and invites the Minister to visit Gestamp in Newton Aycliffe.

    Minister reply

    Provides assurances that new investments will benefit all parts of the supply chain, reiterates her willingness to engage with local businesses and invites further interaction.

  • Tan Dhesi Lab Slough

    Question

    Questions how the government plans to ensure more battery capacity investment following Tata's announcement.

    Minister reply

    Explains that the UK needs 100 GW of battery capacity, with current investments putting us two-thirds towards this goal and expresses confidence in continued investment.

  • Sara Britcliffe Con Beverley

    Question

    Welcomes the news but asks for assurance that the Government will support businesses across the supply chain.

    Minister reply

    Commits to involving as many firms as possible in initiatives such as the automotive transformation fund and Faraday challenge.

  • Anna McMorrin Lab Cardiff North

    Question

    Asks how the new gigafactory investment will impact industrial energy prices.

    Minister reply

    Explains that high energy prices due to Putin's invasion of Ukraine led to support programmes and lower future energy costs, attracting Tata with competitive UK energy prices.

  • Margaret Ferrier Ind Rutherglen

    Question

    Asks about supply-side reforms to secure sustainable foreign direct investment.

    Minister reply

    Commits to working closely with industry to establish a supply-side input strategy by the autumn.

  • Rachel Hopkins Lab Luton South and South Bedfordshire

    Question

    Asks about public money arrangements for supporting Tata’s gigafactory investment.

    Minister reply

    Announces £4.5 billion of private investment from Tata, creating over 4,000 jobs and potentially supporting 2,500 firms in the supply chain.

  • Jim Shannon DUP Strangford

    Question

    Welcomes the announcement but asks if other regions will be considered for future battery factories.

    Minister reply

    Reiterates commitment to attracting new investment and considers all proposals from commercial partners.

Shadow Comment

Dominic Raab

The shadow welcomed the announcement but criticised the government for not offering a costed plan like the opposition's £28 billion proposal. He emphasised the importance of supporting the supply chain and the UK’s comparative advantage in EV batteries, particularly with lithium deposits in Cornwall.

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