spot_img

Tata seeks partnerships for UK battery plant to supply Jaguar Land Rover EVs

Date:

Share:

[ad_1]

Tata Sons is in discussions with multiple start-ups as the conglomerate seeks technical know-how for its £4 billion ($5.1 billion) UK battery plant, where it aims to start mass production in 2026.

“If you look at the start-ups that are working in this space, they are at the forefront of technology,” Tata Motors Group Chief Financial Officer P.B. Balaji said in an interview in Mumbai. “It’s a melange of opportunities. We are speaking to a host of them,” he said.

Also Read | Indian consumers are seeking aspirational, feature-rich SUVs, says Tata Motors HoM Vinay Pant

The collaborations for the battery plant, capable of supplying cells for at least 500,000 vehicles a year, could range from a joint venture and sharing of knowledge to experimentation and licensing agreements, Balaji said. 

Tata intends to have partners across “the whole pathway from cell chemistry to manufacturing to industrialisation,” he said. The conglomerate is speaking to several companies involved in different stages of the value chain — research and development, manufacturing innovation and refining — and plans to make an announcement soon after narrowing down the options.

Tata’s push adds to a host of carmakers like Mercedes-Benz Group Ag, Stellantis NV and Nissan Motor Co., who have mostly chosen to work with long-standing battery makers in scaling up Europe’s battery supply. Volkswagen AG, which is developing 240 gigawatt hours of capacity in the region, in June said its plans faced challenges from finding enough skilled workers, equipment and critical minerals.

The factory is a win for the UK’s car industry that has been struggling in the aftermath of Brexit and the switch to electric vehicles. The UK produced 775,000 cars last year, the fewest since 1965, after the global semiconductor crunch and the closing of some factories hit output. 

Also Read | JLR sales double with 102% growth in Q1 FY24

Jaguar Land Rover Automotive Plc. and Tata Motors, which is a leader in India’s EV market, are anchor customers for the plant that will provide 40 gigawatt hours worth of batteries with supplies starting from 2026. JLR plans to invest £15 billion over the next five years in developing electric cars and autonomous-driving features.

Tata plans to fund the project with a combination of equity and debt, Balaji said, adding it will also look at equipment financing. Tata will borrow whatever is required to keep the business plan running without over-leveraging the balance sheet, he said.

Tata’s main demand from the UK was securing competitive cost and availability of green power on a continuous basis and negotiating that took time, Balaji said. The UK government adjusted taxes, including grid and connection charges, to make the power competitively priced. 

More stories like this are available on bloomberg.com



[ad_2]

Source link

━ more like this

China Sanctions: China sanctions US firm Kharon, provider of research on Xinjiang

BEIJING: China's foreign ministry said it had sanctioned Kharon, a US firm founded by former treasury department officials that provides data to companies...

Bry-Air Conducts the 13th Biannual Eye Camp to Support Underprivileged People Suffering from Eye-Related Problems

Bry-Air Conducts the 13th Biannual Eye Camp to Support Underprivileged People Suffering from Eye-Related Problems Staying true to its commitment to enhancing lives through CSR...

Ukraine: Ukraine claims destruction of major Russian navy vessel in Crimea

Ukraine's air force said on Tuesday that it had destroyed a major Russia landing ship stationed in the Crimean waters, after the Russian-installed...

Mavericks’ Luka Doncic reaches 10,000-point career milestone

Mavericks star Luka Doncic reached 10,000 career points during the first quarter of Dallas’ road game against the Phoenix Suns. Doncic reached 10,000...

Indonesia nickel plant explosion death toll rises to 18

JAKARTA: The death toll after an explosion at a Chinese-funded nickel-processing plant in eastern Indonesia over the weekend has risen to 18 with...