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Tata Group Gigafactory Investment
20 July 2023
Lead MP
Nusrat Ghani
Debate Type
Ministerial Statement
Tags
Business & Trade
Other Contributors: 17
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.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
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.
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
Shadow Comment
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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