Government backs UK’s largest gigafactory with £700m investment and 4,200 jobs

The Government has announced a major £700m investment package to support advanced manufacturing, securing 4,200 jobs as part of plans to strengthen domestic battery production and economic resilience.

The funding, delivered under the UK’s Modern Industrial Strategy, includes a £380m Government grant to support Agratas in building one of Europe’s largest gigafactories in Somerset.

The facility is expected to play a central role in reducing reliance on imported batteries, while contributing an estimated £43bn to the UK economy over the next 25 years.

In addition to direct employment, the project is set to create thousands of supply chain jobs and 300 apprenticeships, supported by a dedicated training unit for battery manufacturing skills.

Peter Kyle, UK Secretary of State for Business and Trade, announced the investment during a site visit, positioning it as a key part of the Government’s strategy to support future industries.

Kyle said: “This government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country – helping to boost economic growth and our resilience, secure jobs and put more money in people’s pockets.

“In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond. That is what sets us apart from the rest, and will help ensure advanced manufacturing remains a thriving sector in the UK for decades to come.”

The project will supply battery cells to automotive manufacturers including Jaguar Land Rover, supporting the transition to electric vehicles and strengthening the UK’s position in the global EV market.